Unhappy with a movie studio plan to offer $30 on-demand movies while they’re still in theaters, Regal Cinemas is reportedly planning to play fewer trailers from the participating studios: Fox, Sony, Warner Bros, and Universal.
According to anonymous sources speaking to Deadline, Regal is stripping away advertising from the studios when they need it most, in the weeks leading up to the make-or-break summer blockbuster season. Deadline reports the directive could lead to hundreds of millions of dollars’ worth of lost free advertising for the studios.
The studios’ on-demand plan, called “Home Premiere” will be offered on DirecTV first, then eventually cable services including Comcast. Movies will be available as soon as eight weeks after their theatrical debut.
Unspoken in Regal’s retaliation is that the lack of promotion could potentially decrease the chain’s own traffic.