Cineworld Group PLC (LON:CINE) shares slumped as much as 9% as a streaming deal between US rival AMC and Universal Studios tore up the industry playbook.

It comes after a very public spat between AMC and Universal previously saw the latter’s movies banned from the former’s theatres, following the direct streaming of the Trolls World Tour movie by Universal exclusively to customers at home.

In a new deal, however, AMC consents to Universal for release its movies to be streamed directly to customers once the movie has been in theatres for seventeen days.

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Experts are already predicting that the deal could have a significant impact on the broader cinema industry, not least because it dramatically reduces the period of exclusivity in which theatres can screen new movies.

Defending the move AMC chief executive Adam Aron said the new economic structure and premium video-on-demand would improve movie studio profitability which would, in turn, allow studios to green-light move theatrical movies.

Donna Langley, Universal Studios chair, added: “The theatrical experience continues to be the cornerstone of our business.

“The partnership we’ve forged with AMC is driven by our collective desire to ensure a thriving future for the film distribution ecosystem and to meet consumer demand with flexibility and optionality.”

In London, Cineworld shares fell 3.16p or 7.3% to change hands at 39.73p.