(CNN) – AMC Theaters says it will no longer screen Universal Pictures films.
The theater chain’s CEO announced the ban in a letter to Universal’s chairman Tuesday.
It comes after NBC Universal’s CEO told the Wall Street Journal that once theaters reopen, they expect to release movies directly to theaters and on-demand.
AMC called that idea “categorically unacceptable.”
Universal successfully released “Trolls World Tour” on digital platforms only after the pandemic forced movie theaters to close, but AMC called that release an exception to the rule.
It says changing the way movies are released represent nothing but downfall for them.
Universal noted that it had no plans to abandon theaters.
The studio says it believes in the theatrical experience but wants to release future films on-demand when it makes sense.
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