Dec 4, 2020

Warner Bros. to simultaneously stream all 2021 theatrical releases. What this means.

The longer the pandemic dragged on, the more the balance of power between studios and movie theaters tilted in favor of the former. First, Universal negotiated with theaters to shorten the period of exclusivity. Then, Warner Media decided to release "Wonder Woman 1984" in theaters and on the same day on an upstart streaming service called HBO Max, completely disrupting the theatrical release window.

And now Warner Media, a division of telecommunications giant AT&T, has announced its biggest distribution shakeup to date. In a stunning move, Warner Bros. will follow the model built with "Wonder Woman 1984" and release all 17 films in 2021 simultaneously in theaters and on HBO Max (in the U.S.). This slate, which includes major films like "The Matrix 4" and "Dune," is a huge gamble that has the potential to change the industry.

Here's what happened and what it means for theaters, audiences, and animation:

Each of the 17 films will be shown on HBO Max for 31 days (at no additional charge to subscribers) and will be shown in theaters at the same time. After that, they will be exclusive to movie theaters until they reach the traditional home entertainment quota, after which they will be available on VOD platforms such as Amazon and Itunes. It is not clear when (or if) it will return to HBO Max.

While there are no fully animated feature films on the Warner Bros. slate, two films featured on Cartoon Brew: Tom & Jerry and Space Jam: A New Legacy are hybrid features based on classic animated properties. They are "Tom & Jerry" and "Space Jam: A New Legacy.

Clearly, Warner Bros. does not believe in a quick recovery of the U.S. box office sector. Warner Bros. knows better than anyone what it means to release tentpoles in the current climate. It tried this with Christopher Nolan's "Tenet," which turned out to be a lackluster business domestically ($57 million so far). The number of people infected with the coronavirus is on the rise, and movie theaters are closing again.

The move is also a boon for HBO Max, which got off to a relatively slow start after being launched into the crowded streaming space in May; as of late October, HBO Max and its sister network, HBO, had 38 million customers in the US.

Once again, the company has been caught off guard. Adam Aron, CEO and president of beleaguered AMC Entertainment, lamented the move, claiming that "the vaccine is in sight and the theater business is expected to recover." He added, "We will aggressively pursue economic conditions that will sustain our business."

Meanwhile, a Cinemark representative said, "Given the current business environment, we are making reservations on a film-by-film basis for the time being. At this time, Warner Bros. has not disclosed details about its hybrid distribution model for 2021 films." He stated. [Warner Bros. Chairman and CEO Anne Cernoff called the new approach a "unique one-year plan," and when Vox asked Warner Media CEO Jason Killer about the prospect of extending this model through 2022, he "obviously by this time next year We should confirm that," he replied. (Note: Warner Bros.' animated feature "DC Super Pets" is currently scheduled for May 22, 2022.)

Having 17 major films on HBO Max's schedule puts pressure on other media conglomerates with streaming services. The eyes of rivals such as Disney and Paramount are focused on whether or not they will turn to their own streaming services for more big titles in order to compete (Disney's recent restructuring is designed to do just this)

. This is reflected in the thinking of Warner Bros. Toby Emmerich, Chairman of Warner Bros. Pictures Group, told Variety: "Outside the U.S., in places like China, Korea, Japan, and parts of Western Europe, our films can only be seen in movie theaters. We believe these markets can perform better. "However, it should be noted that HBO Max will launch its service in Latin America and parts of Europe next year, and there is potential for this strategy in other regions.