In all likelihood it will be one of the, if not THE, biggest grossing movies of the year. After some so-so middle movies, the recent Star Wars films have really lit a fire under the franchise once again. And the next installment, the much anticipated next installment is due in just about a month.
So if you’re a fan, it sounds like all great news. And you would assume that it’s all good news for the theater owners as well. That may be taking it one step too far. Because Disney is demanding an awful lot from the theaters in return for running the movie.
Exact figures are not generally bandied about, but reliable sources indicate that movie studios normally get between twenty-five and sixty percent of ticket sale revenues from the studios. Conventional wisdom says the local theater makes its profit on popcorn and snacks. So it was a bit of a shock when the word went out that Disney wanted sixty FIVE percent of ticket sales if you wanted to show the latest Star Wars flick. Industry reports say that’s an all-time high. And that wasn’t all.
The theaters have to show the movie in their largest theater AND it has to run a minimum of four weeks. For theaters in large markets, that’s probably not a terrible burden. But if you live in a smaller market, it may mean you will have to travel to the big city to see the movie. A handful of smaller theaters have already announced they just won’t show the movie at all. On top of it all, there’s an additional five percent penalty on ticket revenues if you don’t follow all the rules.
This has already been a tough year for the local theaters. Box office revenues are down five percent for the year so far. Disney is the nine hundred pound gorilla in the movie world. Beyond its own hits, it also owns Lucasfilm and Marvel Entertainment. It’s in a position to set the rules, and there’s not a lot of wiggle room.
That may seem like no big deal to you. But if other studios follow suit, the trickle down effect will show up in short order. With box revenues falling overall, and studios taking more of that money, theaters will have two choices, jack popcorn and snack prices even more, or just close the doors. It’s almost inevitable that there’s a major blowout coming between the studios and the theaters.
And that sounds a bit too much like the dark side for this movie lover.
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