LOS ANGELES (CBSLA) – Home audiences will be able to see new Hollywood releases much earlier under a contract announced on Tuesday.

Universal Pictures and AMC Theaters say the historic agreement will make Universal Films available for video-on-demand (VOD) platforms after being shown in AMC theaters in the US for 17 days.

AMC – the largest theater chain in the country – will share in the income from the on-demand business.

The agreement also applies to versions of the Universal Focus Features.

Historically, major Hollywood studios have only shown new films in cinemas for about three months before they were released for VOD.

Both universal and AMC managers say the move is a new model for the industry.

"AMC enthusiastically welcomes this new industry model, both because we are involved in the overall economy of the new structure and because Premium Video on Demand creates the additional potential for higher profitability of the film studio, which in turn should lead to the green light of more cinema films." said Adam Aron, CEO of AMC.

AMC – which was severely affected by the coronavirus shutdown – announced earlier this month that it would delay reopening until at least July 30 due to the surge in COVID-19 cases.

Aron had previously threatened to boycott all Universal films after the studio announced that "Trolls World Tour" would be released in all cinemas that were open and on VOD.

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