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 The world's second-largest
cinema operator, whose reopening plans follow
larger U.S. rival AMC's, said its multi-year
deal with Warner Bros. will allow it to run the
studio's movies exclusively in U.S. cinemas for
45 days, with certain provisions, starting next
year.
Shares were down 2% by 0853 GMT after earlier
rising as much as 5%, with a Berenberg analyst
saying markets were focusing on how the deal cut
the traditional 90-day exclusivity window in
half.
Cinema operators have struggled as the health
crisis accelerated a shift to streaming and
disruptions to film-making mean fewer new films
have been released.
This year looks more promising as vaccine
rollouts raise hopes that social-distancing
rules will ease and as delayed releases, such as
the new James Bond movie "No Time to Die", are
premiered in cinemas.
Some major movies, including "Mulan" and "Enola
Holmes", last year skipped the conventional
theatrical debut to stream directly on platforms
such as Netflix.
"We are very happy for the agreement with Warner
Bros. This agreement shows the studio's
commitment to the theatrical business," Chief
Executive Mooky Greidinger said.
With capacity limits rising to 50% or more
across most U.S. states, Cineworld will be able
to operate profitably in its biggest markets, he
said.
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 In the United Kingdom, Warner
Bros. and Cineworld have agreed to an exclusive
theatrical window of 31 days before the film
goes to premium video on demand (PVOD), with an
extended window of up to 45 days for films that
open to an agreed upon box-office threshold.
Cineworld, which closed most of
its nearly 800 sites last October, temporarily
putting 45,000 jobs at risk, plans to reopen its
UK cinemas in May in line with government
guidelines.
Analysts on average have estimated Cineworld's
2020 loss at $1.29 billion when it reports
results on Thursday, Eikon data from Refinitiv
shows. That compares to a profit of $220.2
million in 2019.
The results would seal a torrid year for
Cineworld in which it was forced to seek debt
waivers and secure $750 million in additional
funding, while also seeing its merger proposal
with Canadian peer Cineplex collapse into a
legal tussle.
Markets will also focus on Cineworld's finances,
with its debt-pile having crossed $4 billion
last June.
(Reporting by Muvija M and Chris Peters in
Bengaluru, additional reporting by Aby Jose
Koilparambil; Editing by Devika Syamnath and
Barbara Lewis)
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