Major theater chains may drastically discount Warner Bros. movies and keep a larger cut of the proceeds in response to WarnerMedia's decision to release the 2021 slate simultaneously to cinemas and to streaming on HBO Max.

According to THRAMC Theatres, which revealed its cash reserves will be "depleted" by January 2021, and Cinemark Theatres, which saw its stock drop by 21% after WarnerMedia's move, have said they will consider whether to carry each of the studio's offerings on a case by case basis. Some theaters, meanwhile, may opt to drop the ticket price for Warner Bros. movies down to $3-5. Moreover, they may choose to hold on to the lion's share of the proceeds, turning back only 20-25% to the studio.

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Initially, WarnerMedia. announced it would release Wonder Woman 1984 to HBO Max and theaters at Christmas, but later announced it would do so with all 17 films on its 2021 roster.

AMC Theatres CEO Adam Aron previously criticized the move, saying, "We will aggressively pursue economic terms that preserve our business." AMC's stock dropped more than 17% after the studio's move, which came after AMC announced it would sell 200 million shares to generate cash.

AT&T CEO John Stankey defended the shakeup, however, citing the COVID-19 pandemic and saying "we unleashed a new normal in society. That horse left the barn. I don't think any of us are going to change that dynamic."

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Source: THR