Warner Bros is planning to implement a "Hybrid Model" in the release of its upcoming blockbuster movies next year.
The company said late Thursday it would be releasing its latest movies through both HBO Max streaming and in theaters simultaneously.
The landmark response to the state of the movie industry is unprecedented. Hollywood has been struggling to stay afloat since the pandemic, particularly after theaters worldwide were forced to close for months.
"The pandemic has accelerated this process at warp speed, and facing an unknown marketplace from a box office standpoint in 2021, Warner's made an extreme pivot that may forever change the theatrical industry," analysts at Exhibitor Relations said in a statement.
Warner Bros said that upcoming blockbuster movies such as "Dune" and "The Matrix 4" will become available to people at home that cannot - or are unwilling - visit theaters next year. The decision caused a stir throughout the industry - it might mark a shift in how movies will be released in the future.
Industry experts said that the approach could be a "one-off" gamble for Warner Bros. However, its success might reshape the movie industry.
Warner Bros' chief executive officer Ann Sarnoff said that "creative solutions" were necessary to address these "unprecedented times." She added that the company wants its big movies on the big screen but the expected reduced capacity throughout 2021 might be problematic for ticket sales.
In many parts of the U.S. and other countries, theaters remain closed as the threat of additional waves of coronavirus lingers. Movies typically recoup their production costs only during a tight window on the big screen - which is typically about 90 days.
Warner Bros said that the "hybrid model" will be applied to at least 17 titles, including highly anticipated ones such as "The Suicide Squad 2" and "The Many Saints of Newark." The company said that the movies will be made available on HBO Max for at least one month after their respective theatrical releases.
