Taylor Swift's Eras Tour Theater Experience Sparks Frustration for Movie Studios

Distribution execs reportedly first learned of the deal from AMC's press release.

By Ashley Turner

Havoc ensued after Taylor Swift announced on Instagram Thursday morning that Taylor Swift: The Eras Tour will be shown in domestic and international theaters for four weekends starting October 13. Many of the theaters that are showing the concert film are already sold out, and some exhibitor presale websites are already experiencing delays as a result. According to Indiewire, currently, AMC has its own distribution arm as its distributor of record, and it is by far the most significant movie release in its history. Previously, it was a distributor of small films released at its own theaters. AMC also published an early morning press release, from which the studios learned about all of this for the first time. Sources told IndieWire distribution execs heard about this either through a press release or a phone call from an exhibitor-distributor early in the morning.

Only AMC and Cinemark knew about the deal, while other theaters were left in the dark. The nation's largest theater circuit, AMC, did not alert its studio partners about the deal, which Indiewire says is causing "major anger." In addition, Swift's representatives have selected AMC Theaters Distribution as the distributor of record for the U.S.; Cinemark and other circuits will handle foreign territories. The concert, however, will not be exclusive to any exhibitor; Variance, based in New York, will book the film for other theaters in the U.S. It is expected that it will open on more than 4,000 screens worldwide, affecting the box office in October.

Universal Pictures, who previously had The Exorcist: The Believer on October 13, has moved that film to October 6. That is neither affordable nor optimal, given that they already have the original date with advertising for the film already committed. Indiewire notes that Leonardo DiCaprio and Robert De Niro's Killers of the Flower Moon could now compete with Swift for IMAX and premium screens. This is especially worrying since the drama's 3.5-hour runtime already limits its screenings. As of now, the weekend of October 20 is showing no on-sales for either film at IMAX venues.

According to the outlet, it is an aggressive, hands-off move among the social contracts that usually guide theater bookings. In the industry, distribution companies don't surprise each other with release dates. Studios expect to be able to defend their films' priority in theaters with plenty of time. This time around, AMC has committed screens for multiple weekends, which has left those affected with no choice but to accept their unavailability before hearing about it. Sources suggest to Indiewire that ticket prices are set at $19.89 for adults and $13.13 for children, not including taxes and fees, and are dictated by Swift's team, not AMC. It's unusual, if not illegal, for distributors to dictate ticket prices, and it's unclear what loophole might have been exploited in this case. 

Also, that violates industry norms regarding matinee pricing, senior discounts, and different regions. Furthermore, organizations' benefit programs, like AMC Stubs, are ignored. Ultimately, it doesn't matter who is at fault; theaters' ticket websites are now flooded, putting Sony at risk with The Equalizer 3 opening on Friday. Even though AMC's sites suggest people buy tickets at theaters, studios often pay exhibitors for elevated sites and will be upset if tickets can't be purchased.

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