'Trolls World Tour' to debut April 10

Poppy and company are back in action in "Trolls World Tour." The movie will be released for online viewing on the same day as its scheduled April 10 theatrical release.

Universal Pictures’ decision to rapidly accelerate the home video release of its theatrical movies during the coronavirus crisis is likely a relief to housebound families, now that movie theaters are mostly shuttered.

The Comcast Corp.-owned studio is making “The Hunt,” “Emma” and “The Invisible Man” available for digital rental as soon as Friday. The DreamWorks Animation sequel “Trolls World Tour” will be released through online retail services on the same day as its scheduled April 10 theatrical release.

Immediately, questions about the larger industry implications began circulating.

Which studios would follow Universal’s lead in breaking the traditional theatrical window, in which multiplexes have exclusive access to new movies for an average of about 90 days before they’re released for home viewing?

On Tuesday, the AT&T Inc.-owned Warner Bros. said its DC antihero movie, “Birds of Prey and the Fantabulous Emancipation of One Harley Quinn,” will be released for digital purchase March 24. That’s 6 1/2 weeks after the Margot Robbie film’s Feb. 7 theatrical debut.

“Birds of Prey” director Cathy Yan cheered the Burbank-based studio’s decision on Twitter.

“Thanks to all the fans and supporters out there. I’m just happy people will be able to enjoy new and fun movies right now,” Yan wrote.

Another major question persists. Is Universal’s bold move a temporary fix to cope with the lack of out-of-home entertainment options as American social life comes to a virtual standstill? Or is it foreshadowing a future in which Hollywood studios bring certain movies to consumers digitally much sooner than they previously would have?

After all, studios have long wanted to collapse the theatrical window in response to changing consumer demand. Universal is owned by cable giant Comcast Corp., which would benefit from being able to deliver movies directly to subscribers more quickly.

However, theater owners have long resisted any attempts to break with established windowing practices, arguing that shortening the timeline would destroy their business.

“We expect when [theaters] resume operations, they will hold a strong position that this was a ‘once in a lifetime’ reaction to a very specific situation, and will not again be repeated,” Bernstein media analyst Todd Juenger said in a research report. “But the toothpaste will be out of the tube.”

The National Association of Theatre Owners on Tuesday downplayed the possible ramifications. Moviegoing, the Washington, D.C.-based trade group said business will rebound when theaters reopen. For major films, the group also noted, studios rely on robust theatrical releases to make a profit.

“To avoid catastrophic losses to the studios, these titles must have the fullest possible theatrical release around the world,” the group said. “It is our understanding from discussions with distributors that the vast majority of deferred releases will be rescheduled for theatrical release as life returns to normal.”

During the pandemic, studios will be able to test how much money they can make from early releases of certain titles. Universal is charging $19.99 to rent its movies for 48 hours, for example. That may seem high for a digital rental, but it’s significantly lower than the cost of taking a family to the movies.

Armed with data they never had before, studios could emerge from the crisis in a better position to negotiate terms with the major theater chains, said one longtime film distribution executive who has dealt with on-demand platforms.

“This is the first time studios can actually test this on movies, and the exhibitors can’t do anything about it, because they’re closed,” said the executive, who requested anonymity to protect industry relationships. “On the other side of this, they’re going to have data that shows how many people sitting at home are going to pay $20 for a 48-hour window.”

Of course, that data will be skewed by the fact that customers have little else to do while bars, restaurants and other recreational places are closed in many parts of the country. Televised sports have also been postponed.

“The pandemic certainly gives the studios cover for this grand experiment that they’ve long wanted to make,” said San Diego-based analyst Peter Csathy, founder of consultancy Creatv Media. “But the results of the experiment will be predetermined, because there’s no alternative and we’re so desperate for content. It’s an experiment born out of practical necessity.”

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