AMC Theatres and Netflix Collaborate on Halloween Release

LOS ANGELES, CA — AMC Theatres and Netflix are easing their previous tensions with a groundbreaking agreement to screen the animated musical “KPop Demon Hunters” in 300 venues over the Halloween weekend. This move marks a significant shift, as AMC has historically been reluctant to showcase Netflix films due to disputes over exclusive theatrical release durations.

Alicia Reese, a VP of equity research at Wedbush Securities, explains that Netflix’s motivations for theatrical releases are evolving. Once focused mainly on awards consideration and appeasing talent, the company now aims to maximize audience reach. Meanwhile, AMC is facing significant challenges, with box office revenues falling 20% below pre-pandemic levels, making it crucial not to ignore potential hits.

<p“The KPop Demon Hunters” performed well during its initial release, earning approximately $18 million, despite not being shown in AMC theatres. This success may prompt AMC to reconsider its stance toward Netflix.

<pAMC’s previous partnership with Netflix has been limited, with the only title screened being “Glass Onion,” the sequel to “Knives Out.” However, AMC’s recent statement hints at a readiness to explore mutually beneficial opportunities with Netflix. This new attitude has already led to collaboration on the upcoming “Stranger Things” finale, which will debut in AMC theatres as it streams on New Year’s Eve and New Year’s Day.

<pInsiders speculate that Netflix's increased willingness to engage with theatres may be partly due to losing key projects to competitors and recognizing the cultural significance of theatrical releases. Unlike traditional studios that rely heavily on box office profits, Netflix views screening films as a marketing opportunity, hoping to drive interest back to its platform.

<pThis partnership could provide AMC with additional revenue during slow seasons. Additionally, other collaborations may be brewing, including Greta Gerwig’s “Narnia” adaptation, which is expected to have an exclusive IMAX run but might expand to wider formats in the future. Moreover, Netflix is considering a more extensive release strategy for David Fincher’s “Adventures of Cliff Booth,” which is a spin-off of “Once Upon a Time in Hollywood.”

<pNot all forthcoming projects will see a wide release, as “Wake Up Dead Man: A Knives Out Mystery” is only set for an awards-qualifying run. Despite this collaboration, Netflix CEO Ted Sarandos maintains a degree of skepticism towards traditional cinema experiences, declaring Netflix's primary strategy is providing exclusive first-run films to its subscribers.

<pAs Netflix enters the theatrical landscape, studios and exhibitors are adjusting their expectations. Unlike Amazon MGM, which plans multiple theatrical releases annually, Netflix's strategy will likely remain selective, focusing on films with existing fan bases. The changes have allowed exhibitors a more flexible scheduling approach, especially regarding titles like “KPop Demon Hunters.”

<pWhile the industry welcomes Netflix’s growing interest in theatres, studios remain cautious, watching closely to ensure they do not lose market share to the streaming giant.