The news batters a sector that has been troubled in recent months by negative movie reviews driving down revenue from films projected to be big draws.
‘When it rains on exhibition stocks, it pours. Major theater owners’ shares are getting walloped today following a Bloomberg report that says Warner Bros. and Universal Pictures are talking to Apple and Comcast about introducing premium video on demand (PVOD) on their own — without making a deal with exhibitors.
They could introduce the changes “as soon as early next year” the news service says, citing “people familiar with the matter.”
The three major exhibition chains each touched a new 52-week low this morning. AMC Entertainment — the world’s largest — is down 5.7%. It’s followed by Regal Entertainment, -5.1%, and Cinemark Holdings -2.9%.’