AMC Entertainment and Warner Bros. have reached an agreement to show all of the 2022 slates in theaters for 45 consecutive days.Warner Bros. had resisted the decision of the world's largest theater chain to release this year’s films simultaneously in cinemas and via its HBO Max streaming service. These films include "Godzilla vs. Kong", "Space Jam: A New Legacy", and most recently "The Suicide Squad." It includes, among other things, the upcoming films of "Matrix 4" and "Dune."AMC signed a similar agreement with Universal, Comcast's owned company last year. This deal ensured theatrical exclusivity for at most 17 days before movies could be streamed or on-demand."It's particularly gratifying that Warner Bros. has yet again embraced a theatrical window," CEO Adam Aron stated during Monday's earnings conference. "It's a pleasure for us at AMC to work so harmoniously once more with Warner Bros.Warner Bros. announced in April that it will return to cinema-only releases during AT&T's earnings call. Similar deals had been signed with Cineworld in April, which is the owner of Regal Cinemas and Cinemark in May. These contracts' financial details have not been disclosed.Jason Kilar, WarnerMedia CEO, stated during July's earnings call that theatrical releases would still be important to the company even though it plans to create streaming-only content.Although the hybrid release model was necessary during the pandemic it is clear that it has had a negative impact on box-office receipts for all studios. Films with big budgets have earned a fraction of the money they made in pre-pandemic days.AMC can return to profitability by having exclusive content in theaters. Aron stated that AMC is aiming for the fourth quarter, but this will not be possible unless the domestic box office totals $5.2 billion.The theater chain posted second-quarter revenues of $444.7million, which was higher than analysts expected, but still suffered a loss of $344 million. This is a significant improvement on the $561.2million loss it suffered last year.Disclosure: Universal and CNBC are owned by Comcast.
