Cinemark Reaches Exhibition Pacts With Four More Major Studios
(Bloomberg) -- Theater chain Cinemark Holdings Inc. said it now has agreements with all five major film studios on new terms of theatrical exhibition, codifying a role for its cinemas amid the growing popularity of at-home streaming.
Pacts announced Friday with Walt Disney Co., AT&T Inc.’s Warner Bros., ViacomCBS Inc.’s Paramount Pictures and Sony Corp.’s Sony Pictures Entertainment come after Cinemark reached a similar deal with Comcast Corp.’s Universal Pictures in November.
Under that arrangement, Universal can sell its films to online audiences as soon as 17 days after they’re shown by Cinemark, the third-largest U.S. theater chain. Typically, new movies would play exclusively in theaters for two or three months. It is unclear if Cinemark is getting a cut of Universal’s online movie sales.
Plano, Texas-based Cinemark didn’t disclose the terms of the four new agreements, saying that each pact “has unique attributes specific to the individual studio that mutually benefit both parties.”
AMC Entertainment Holdings Inc., the world’s largest movie-theater chain, reached an exhibition deal with Universal earlier in 2020.
Also Friday, Cinemark reported first-quarter revenue that beat analysts’ expectations, as moviegoers returned to auditoriums with the Covid-19 pandemic easing. The company’s shares were up 2% to $20.90 in premarket trading at 8:45 a.m. in New York.
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