The film industry giants have penned a deal for premium VOD streaming.

Back in the spirng, AMC Theaters and Universal Studios began a feud over streaming rights for new films. This feud was instigated by Universal’s decision to release one of its big summer blockbusters, Trolls World Tour, on streaming platforms and in theaters simultaneously due to the COVID-19 pandemic. In response to this, AMC CEO Adam Aron swore that Universal films would no longer be shown in AMC theaters. After holding this position for several months, it seems AMC and Universal have finally come to an amenable agreement.

AMC and Universal signed a new revenue pact yesterday that would allow Universal to premier their films on streaming services three weeks out from their theater debuts, with the caveat of only being able to premier on premium services for at least $20. They will not be able to rent films out in the typical range of $3-6 until three months after the premier. In exchange for their cooperation on this, AMC will receive a small cut of profits from digital rentals.

“The theatrical experience continues to be the cornerstone of our business,” said Donna Langley, chairman of Universal Filmed Entertainment Group. “The partnership we’ve forged with AMC is driven by our collective desire to ensure a thriving future for the film distribution ecosystem and to meet consumer demand with flexibility and optionality.”

In a response, Aron expressed his confidence that people will happily return to theaters once the pandemic finally ends. “Focusing on the long-term health of our industry, we would note that just as restaurants have thrived even though every home has a kitchen, AMC is highly confident that moviegoers will come to our theaters in huge numbers in a post-pandemic world.”