AMC Theatres CEO Adam Aron announced in an open letter to Universal Pictures Chairman Donna Langley that the nationwide theater chain will no longer screen Universal’s films following comments by NBCUniversal CEO Jeff Shell that the studio plans to release more films day-and-date both theatrically and on video-on-demand.

“It is disappointing to us, but Jeff’s comments as to Universal’s unilateral actions and intentions have left us with no choice,” Aron wrote. “Therefore, effectively immediately AMC will no longer play any Universal movies in any of our theatres in the United States, Europe or the Middle East. This policy affects any and all Universal movies per se, goes into effect today and as our theatres reopen, and is not some hollow or ill-considered threat.”

Shell made the comments in a Wall Street Journal story Thursday morning that reported the animated film “Trolls World Tour” made $95 million in digital rentals in the 19 days since its release. The film was initially planned for theatrical release but was moved to day-and-date with digital release in March as thousands of theaters were forced to shut down during the coronavirus pandemic.

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“The results for ‘Trolls World Tour’ have exceeded our expectations and demonstrated the viability of PVOD,” Shell said. “As soon as theaters reopen, we expect to release movies on both formats.”

This hint that Universal will be abandoning the long-held theatrical window prompted a response from the National Association of Theater Owners, who insisted that the unique changes in moviegoing habits brought by the coronavirus lockdown are more responsible for the success of “Trolls World Tour” than any perceived changes in customer habits.

“Universal does not have reason to use unusual circumstances in an unprecedented environment as a springboard to bypass true theatrical releases,” said NATO president and CEO John Fithian. “Theaters provide a beloved immersive, shared experience that cannot be replicated – an experience that many of the VOD viewers of this film would have participated in had the world not been sequestered at home, desperate for something new to watch with their families. We are confident that when theaters reopen, studios will continue to benefit from the global theatrical box office, followed by traditional home release.”

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AMC’s termination of its relationship with the studio means it will no longer screen Universal blockbusters that need a theatrical release to make back their enormous production and marketing costs, such as “F9,” the ninth “Fast & Furious” film that was moved to May 2021 because of the pandemic.

A rep for Universal tells TheWrap, “Our goal in releasing ‘Trolls: World Tour’ on PVOD was to deliver entertainment to people who are sheltering at home, while movie theatres and other forms of outside entertainment are unavailable. Based on the enthusiastic response to the film, we believe we made the right move. In fact, given the choice of not releasing ‘Trolls: World Tour,’ which would not only have prevented consumers from experiencing the movie but also negatively impacted our partners and employees, the decision was clear.”

The statement continued, “Our desire has always been to efficiently deliver entertainment to as wide an audience as possible. We absolutely believe in the theatrical experience and have made no statement to the contrary. As we stated earlier, going forward, we expect to release future films directly to theatres, as well as on PVOD when that distribution outlet makes sense. We look forward to having additional private conversations with our exhibition partners but are disappointed by this seemingly coordinated attempt from AMC and NATO to confuse our position and our actions.”

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Aron also warned that the chain is willing to do the same to other studios that make similar moves.

“AMC believes that with this proposed action to go to the home and theatres simultaneously, Universal is breaking the business model and dealings between our two companies,” Aron wrote. “It assumes that we will meekly accept a reshaped view of how studios and exhibitors should interact, with zero concern on Universal’s part as to how its actions affect us. It also presumes that Universal in fact can have its cake and eat it too, that Universal film product can be released to the home and theatres at the same time, without modification to the current economic arrangements between us.”