From
a shared past in home video to shaping the streaming landscape, Netflix and
Disney have long been titans of entertainment, but their relationship with the
traditional cinema model could not be more different. While Disney’s box-office
juggernauts fill theaters, Netflix has championed a direct-to-consumer
approach, creating a fascinating duality for movie exhibitors.

For a company
like AMC Theatres, this contrast creates a significant challenge, forcing it to
navigate two opposed visions for the future of film distribution.

Window wars: Why AMC refuses to play most Netflix movies

AMC Theatres CEO Adam Aron has made it clear in The Town With
Matthew Belloni Podcast that while he wants to show Netflix movies, a
fundamental disagreement over release strategy remains. The primary point of
contention is the theatrical window, the period of time a movie plays
exclusively in theaters before becoming available on other platforms. Netflix
has historically insisted on a very short or simultaneous theatrical and
streaming release, which AMC and other chains argue devalues the movie-going
experience. Aron maintains that a proper theatrical window is essential to the
health of the entire industry.

Adam Aron has stated in the Podcast, “Nothing would make me
happier than for Netflix to want to show movies theatrically”. They have
been trying for years now to convince Netflix, even with the best shows they offer, that the most successful movies
on streaming services are those that have had a robust theatrical release. AMC’s
refusal to bend its rules for Netflix is a strategic move to maintain leverage
and protect its business model, hoping to convince the streaming giant of the
value of a traditional release.

This distinct and often tense relationship with Netflix
stands in sharp contrast to the cooperative and financially intertwined bond
AMC shares with Disney.

Disney’s influence: When Mickey moves, AMC feels it

In stark contrast to its relationship with Netflix, AMC enjoys a
powerful and symbiotic partnership with Disney. Adam Aron openly acknowledges
the critical role Disney’s content plays in AMC’s success, stating, “If
Disney is a big movie, AMC is going to be really full.” And if Disney has a
flop movie or a series, AMC is going to really feel the same.

This simple statement underscores the profound influence of a single studio’s box office performance on the world’s largest movie theater chain. Unlike Netflix,
Disney has consistently embraced long, exclusive theatrical runs for its major
blockbusters. Hits from its various studios, including Marvel, Pixar, and
Lucasfilm, fill AMC’s screens and drive a significant portion of its revenue.
The theater chain’s quarterly performance is, therefore, directly tied to the
success of Disney’s film slate.

Can this tension be sustained, or will one model ultimately
prevail and reshape the future of cinema? Let us know in the comments below.