Simultaneous releases do not sit well with the theater chain.

Movie theater chain AMC has been in constant talks with various film production studios to keep the flow of movies to the big screen steady. Despite many AMC locations reopening with new health and safety measures due to the COVID-19 pandemic, audiences are still not convinced of the idea of seeing a movie in public, opting to stream them at home instead. With WarnerMedia’s most recent announcement, AMC’s problem may have been exacerbated further.

Yesterday, WarnerMedia announced that it would be employing a “hybrid distribution model,” in which their new movies would be releasing simultaneously in theaters and on their streaming service, HBO Max. It was already decided that this approach would be employed for the upcoming Wonder Woman: 1984, releasing on Christmas Day, but now 17 of Warner’s upcoming pictures, including the remake of Dune, the new Matrix film, and The Suicide Squad will be taking the same approach, an unprecedented change for the film industry.

AMC CEO Adam Aron said that his company has already begun talks with Warner’s board on this subject, as this kind of model could spell doom for the theater chain. “Clearly, WarnerMedia intends to sacrifice a considerable portion of the profitability of its movie studio division, and that of its production partners and filmmakers, to subsidize its HBO Max start up [sic],” Aron continued. “As for AMC, we will do all in our power to ensure that Warner does not do so at our expense. We will aggressively pursue economic terms that preserve our business.“

Warner, for their part, are concerned more with getting their films in front of eyes, and have determined that this is the best way to do so, at least as long as the pandemic is still going. “After considering all available options and the projected state of moviegoing throughout 2021, we came to the conclusion that this was the best way for WarnerMedia’s motion picture business to navigate the next 12 months,” WarnerMedia chief Jason Kilar said in a statement. “More importantly, we are planning to bring consumers 17 remarkable movies throughout the year, giving them the choice and the power to decide how they want to enjoy these films. Our content is extremely valuable, unless it’s sitting on a shelf not being seen by anyone. We believe this approach serves our fans, supports exhibitors and filmmakers, and enhances the HBO Max experience, creating value for all.”