Last week our resident entertainment attorney, Brandon Blake, took a look at the intricacies of the new Universal pay-one cycle. This week, we see the first post-pay-one announcement from Universal Filmed Entertainment Group (UFEG), continuing their new content distribution strategy. Let’s take a closer look.
Brandon Blake-Managing Partner at Blake & Wang P.A.
It’s pretty clear, even from the flurry of pay-one details released last week, that Universal is keen to put their illustrious catalog to use in revenue generation. Now we see a multi-year licensing agreement with Starz hit the negotiation table, too. Once the agreed pay-one window closes, Starz will have exclusive domestic U.S access to the 2022 theatrical slate (and more).
This means the deal will cover the much-anticipated next installment in the Jurassic World franchise, as well as hits from Focus Features, Blumhouse entertainment, and even the UFEG back catalog.
This access will come after the new, complicated, but lucrative, pay one cycle that will see Universal pass the torch to Peacock, and then a system of partners including Amazon Prime Video, before going back to Peacock and Universal for the closing months of the 18-month pay-one cycle.
Universal has already expressed a deepening commitment to opening up their catalog through multiple platform partners, in a mostly win-win strategy that will see more people exposed to their works as well as boost their bottom line. For Starz, this deal adds to the exclusive pay-one licensing deal they announced earlier this year to take over theatrical releases from Lionsgate, their parent company.
Will Universal’s new content licensing strategy become an industry standard? While it’s too early to say, overall this looks like an interesting and productive partnership for Universal’s pay-two cycle and will set some interesting new precedents for future partnerships, too.
