AMC Entertainment to unveil AMC Theaters On Demand, an iTunes-like online video store, in the US, offering ~2,000 films for ~$3-$6 to rent and ~$10-$20 to buy
LOS ANGELES — In a sign of just how much streaming is changing Hollywood, movie fans will soon be able to rent and buy films …
Context & Ripple Effects
AMC has spent five years building paid relationships with moviegoers beyond the ticket: first the MoviePass partnership at $35-$45/month, then its own $19.95/month AMC Stubs A-List subscription. Theaters On Demand is the next step — instead of charging for visits, AMC now sells the films themselves, wherever the viewer watches.
The storefront lands in a market Redbox already mapped out: Redbox On Demand launched with 6,000+ titles at $3.99 for 48-hour rentals, roughly triple AMC's catalog at comparable prices. What AMC adds is its studio relationships from the exhibition side — leverage that matters as studios weigh releasing films on demand fewer than 45 days after theatrical debut, a shift that directly threatens theater revenue.
First-order effects
- AMC becomes a direct transactional-VOD retailer, competing with iTunes, Redbox On Demand, and other storefronts with a ~2,000-film catalog priced at $3-$6 rentals and $10-$20 purchases.
Second-order effects
- Redbox and established digital stores now face a rival whose parent controls screens — giving AMC both a marketing funnel into its theaters and a hedge if studios shorten the theatrical window.
Third-order effects
- If exhibitors respond to shrinking windows by owning the digital storefront, theater chains evolve into omnichannel distributors, softening their dependence on box-office splits — and raising the odds they tolerate earlier VOD releases they'd otherwise fight.
The trend: Cinema chains are converting their studio relationships and audiences into digital distribution businesses as streaming compresses the theatrical window.