Saturday, July 22, 2006

Disney Sucks

I can't decide if this is good or bad news. I inquired with our booker to see if the Western Film situation with regards to Disney had changed. Disney considers Western Film and Rainbow in the same zone so we can't play the same movie at the same time so we never play Disney. The booker told me that the situation had not changed but in the short term that might be a good thing.
For Cars and Pirates Disney is trying a new way of calculating the percentage theatres pay. It's based on how well the movie does, the better you do the more you pay. This is quite different from the way it works now. Second run theatres pay a percentage known in advance and the same on almost all movies, usually 35%. Some studios drop the percentage the longer we keep the movie.
That isn't the worst part of what Disney is doing. The flat or lowest percentage is 20% higher than we pay now!
This is going to put some theatres in an awful situation. The biggest problem with this is the precedent is could set. If a theatre pays 55% for Pirates the other studios may say they want 55% for their hits too. If it was just Pirates and Cars it could probably be justified since concession sales will be quite high for those movies. However if all the studios wanted 55% many theatres would go out of business.
It's an awful situation to put the theatres in. If I had to make the choice I would boycott those two movies on principle.
Theatres are already squeezed by DVD, Video Games etc and Disney is trying to squeeze even more money out of them.

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