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AMC-Universal Deal Is A Tonic For Theatrical Business, Wall Street Analysts Say, But Ratchets Up Risk For Exhibitors

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Dade Hayes Finance EditorTuesday’s milestone windows agreement between No. 1 exhibitor AMC and Universal Pictures is a near-term positive for the theatrical film business but a potential headache for exhibitors down the road.That’s the general takeaway from several Wall Street analysts who sized up the deal, which allows Universal releases to head to premium video on demand after just 17 days of theatrical release.Michael Nathanson of MoffettNathanson, whose outlook on the exhibition sector is fairly bearish, sees some puts and takes from what he termed “a groundbreaking moment for the film industry.” He pointed out many variables that will play out in the weeks and months to come, principally the individual strategies at various studios.

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