Movie exhibitors are reportedly considering hitting back after Warner Bros. announced that their 2021 slate would debut on HBO Max and in theaters on the same day.
The announcement was a blow to theaters, which took a major blow over the year due to closures and limited capacity amid the ongoing coronavirus pandemic.
The list of 17 movies going to streaming immediately includes some massive properties, including ‘The Matrix 4’, ‘Dune’, ‘In the Heights’ and ‘The Suicide Squad’, which theaters counted on to help them recover after a difficult year.
According to The Hollywood Reporter, some theater chains are now considering lowering the prices of tickets to see those movies.
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The tickets can cost as little as $ 3 to $ 5, the report said, citing insiders.
Additionally, theaters would like to keep between 75 and 80% of the ticket proceeds, leaving only pennies for the studio per ticket.
AMC and Cinemark have issued statements explaining that they will be forced to take the films title by title, while Warner Bros. “recently filed with the SEC.” The decision is partly due to the possibility that the chain will run out of money by the end of January 2021.
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AMC and Cinemark did not immediately respond to Fox Business’s request for comment. Warner Bros. declined to comment.
Warner Bros. is on the cusp of losing an estimated $ 1.2 billion in box office revenues by 2021 thanks to the deal, the reporter quoting a report by MoffettNathanson said.
In addition to the studio’s 2021 slate, “Wonder Woman 1984” will make its debut on HBO Max on Christmas Day, when it also hits theaters.
The spread of the coronavirus and subsequent shutdowns have had a severe impact on the movie industry as many productions have been halted or even canceled due to the outbreak.
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Theaters also have an uncertain future as Regal has closed many venues around the world.