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The on-demand success of Trolls World Tour has strained the relationship of the two companies.

Earlier in the month, Universal released the animated film Trolls World Tour on streaming platforms like Amazon Video due to theaters being closed by the COVID-19 pandemic. Despite the non-traditional release format, Trolls World Tour went on to make Universal approximately $100 million in digital sales. Riding on that success, NBCUniversal CEO Jeff Shell told The Wall Street Journal that as “soon as theaters reopen, we expect to release movies on both formats.” This comment appears to indicate that even when the pandemic subsides, Universal will continue to release their new films on streaming platforms. AMC Theatres chair-CEO Adam Aron did not appreciate this comment, calling it “unacceptable.”

“It is disappointing to us, but Jeff’s comments as to Universal’s unilateral actions and intentions have left us with no choice,” Aron wrote in an official statement. “Therefore, effectively immediately AMC will no longer play any Universal movies in any of our theatres in the United States, Europe or the Middle East.”

“This policy affects any and all Universal movies per se, goes into effect today and as our theaters reopen, and is not some hollow or ill-considered threat,” he continued. “Incidentally, this policy is not aimed solely at Universal out of pique or to be punitive in any way, it also extends to any movie maker who unilaterally abandons current windowing practices absent good faith negotiations between us, so that they as distributor and we as exhibitor both benefit and neither are hurt from such changes. Currently, with the press comment today, Universal is the only studio contemplating a wholesale change to the status quo. Hence, this immediate communication in response.”

Credit: Universal Orlando Resort

Shortly after Aron’s comments, Universal responded, saying that Shell’s comment was misconstrued and that they still believe in the theater business format. “We absolutely believe in the theatrical experience and have made no statement to the contrary. As we stated earlier, going forward, we expect to release future films directly to theaters, as well as on PVOD when that distribution outlet makes sense. We look forward to having additional private conversations with our exhibition partners but are disappointed by this seemingly coordinated attempt from AMC and NATO to confuse our position and our actions,” Universal said.

Aron clarified in his statement that AMC would be open to in-depth discussion with Universal, but until such discussions take place, Universal films will not be shown in AMC theaters.