By R.T. Watson 

AT&T Inc.'s Warner Bros. said it indefinitely postponed what was supposed to be the first major studio release since the Covid-19 pandemic shut down theaters and production throughout the world.

When "Tenet," a highly anticipated action-thriller from director Christopher Nolan, does eventually premiere, it may first do so in theaters overseas before making its U.S. debut, according to a person familiar with the matter.

Warner Bros.' ongoing struggle to find a workable release date highlights the challenges many businesses face -- especially those predicated on public gatherings -- amid shifting public-health mandates and guidelines that differ from jurisdiction to jurisdiction.

Until Monday's announcement, the studio had "Tenet" slated for an Aug. 12 release -- its third scheduled date as the pandemic dragged on. The large majority of U.S. movie theaters have been closed since March, including multiplexes in major markets like California, New York and Texas. Opening a new movie domestically has remained a risky proposition. Meanwhile, theaters have begun reopening in some nations that have had better success than the U.S. in containing Covid-19.

If "Tenet" does initially open overseas, Warner Bros. wants the film to premiere domestically within a couple weeks of the international release, even if only in some U.S. cities, the person also said.

Warner Bros. is expected to announce new release plans for "Tenet" in the coming days, the person said, adding that the studio isn't considering a strategy that includes debuting the film on streaming platforms.

The beleaguered theatrical industry had for several weeks viewed a "Tenet" opening as a milestone, signalling perhaps that the sector was on the road to recovery. But as states have stumbled in their attempts to reopen, theaters have waited on the sidelines.

Some theaters have reopened at limited capacity and heightened sanitation measures. They have been forced to rely on lower-profile independent movies or classic films in order to entice moviegoers.

Larger theater chains like AMC Entertainment Holdings Inc., Cineworld PLC's Regal Entertainment Group and Cinemark Holdings Inc. have been attempting to time their U.S. reopenings to coincide with the premiere of "Tenet" -- widely viewed as the type of potential blockbuster exhibitors require if they hope to attract a large number of moviegoers.

This wouldn't be the first time Warner Bros. has opened a major release internationally before doing so in the U.S. In 2018, the comic-book superhero movie "Aquaman" opened in several international markets, including China, before premiering in the U.S. While it could make the film more susceptible to piracy, releasing "Tenet" first internationally might not significantly affect the movie's profits. As with many big movies these days, Warner Bros. is likely to generate two-thirds of the film's total box-office gross from international markets, the person also said.

With Warner Bros.' decision, Walt Disney Co.'s live-action remake "Mulan" slides into pole position. The movie now sits as the first major Hollywood studio film on the summer calendar, with an Aug 24 release date currently on the books.

 

(END) Dow Jones Newswires

July 20, 2020 16:25 ET (20:25 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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