Universal revealed that it was able to keep 80% of the rentals of 'Trolls World Tour' instead of the 50% deal that studios have with movie theaters. The increased tension between studios and movie theaters could also lead to new negotiations over the split of ticket sales. 'But the flip side is the majority of movies, whether we like it or not, are being consumed at home, and it's not realistic to assume that we're not going to change, that this part of the business isn't going to change like all parts of the business are going to change,' he said. 'It's how people make their movies and how they expect their movies to be seen.' 'I spent a big chunk of the last decade in the film business, and there's no question that theatrical is someday again going to be the central element to our business in the film business,' Universal's Shell said during an earnings conference call Thursday. Think Nolan, Wes Anderson and James Cameron, among others. In this scenario, there is an expectation that there will be filmmakers who are looking to be Oscar contenders who will still seek out theatrical releases for their films as well as those who see the big screen as the place they want to showcase their work. Some predict that movie theaters will become a place only for big budget blockbusters and franchise films while smaller-budget comedies, dramas and genre films will move to on-demand.

While theater owners are confident that customers will return in droves, others are skeptical. Globally, ticket sales soared to a new high of $42.5 billion. Last year, the movie theater industry took in $15 billion in revenue domestically, a combination of around $11 billion in ticket sales and $4 billion in concessions. If studios were to start releasing films in theaters and on-demand at the same time, it would not only take ticket revenue away from exhibitors, it would also mean concession revenue would take a hit.

It's what drives consumers out of their homes. Theaters thrive on having the exclusive first window for a film. 'And AMC knows it, and their investors know it, and it's why you are seeing an imminent risk of death to that company.' 'We are dealing with a wrecked business,' said Jonathan Kuntz, who teaches film history at UCLA School of Theater, Film and Television. Major players in the space have been forced to lay off and furlough employees, suspend dividends, cut salaries and draw down on debt revolvers in order to keep bankruptcy at bay. Theater owners are in a particularly vulnerable position during the coronavirus outbreak because their cinemas are closed and their revenue has shrunk to essentially zero.

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