Faster theater-to-PVOD pipeline proves lucrative for studios, Wicked breaks records

The big-screen adaptation of the Broadway musical Wicked dominated globally at the box office. Now thanks to quicker access on streaming platforms, it’s also breaking premium on-demand records. According to reporting from Deadline, Universal executives confirmed at CinemaCon that it surpassed $70 million in its first week on PVOD. Chairman of Global Distribution Peter Levinsohn placed the overall figure “in the neighborhood of $100 million.”Dual-platform success: The on-demand success follows nearly $700 million in global ticket sales. At CinemaCon, Levinsohn said that Universal remains “a theatrical first company,” but views quick turnarounds to PVOD as a way to maximize overall earnings.Decreasing time-to-small-screen: Universal led the industry in 2020 by formalizing a new PVOD model as part of an agreement with AMC and other major exhibitors to counter shifting viewing habits. The studio can release a film on PVOD 17 days after theatrical debut if its opening weekend is below $50 million, or after 31 days if it surpasses that threshold. Universal waited 39 days into Wicked’s theatrical run before heading to PVOD, where Wicked scored a staggering $26 million on the digital platform in just its first day.Opportunity for advertisers: With this level of pre- and post-theater engagement, marketers will find more innovative ways to align brand messaging that extends momentum well beyond opening weekend. Brands will benefit from coordinated cross-platform campaigns — in this case, social, streaming, theater, and TV promotion — by leveraging the additional real estate and creative collateral that is spun off.