Much like Emperor Palpatine as he orchestrated the fall of the Jedi, Disney appears to be wielding “unlimited power” in their negotiations with theatres.
The uber-powerful studio is using its leverage to its advantage when negotiating with cinema chains, as the Wall Street Journal is reporting that theatres will have to follow a strict list of demands if they want to screen Star Wars: The Last Jedi. Theatres in the United States will have to fork over 65% of the film’s box office earnings to Disney, and screen The Last Jedi in their largest auditorium for the first four weeks of the film’s run. Some of the other terms are still being kept secret.
These terms will take effect if the movie earns more than $500 million in North America, and based off everything we know about the movie and the Star Wars franchise in general, this is a given.
The Star Wars franchise has a history of playing hardball with theatre chains, as Lucasfilm not only received a larger piece of the box office earnings for Star Wars: Episode I - The Phantom Menace, they also demanded a cut of the concessions on opening weekend. Before Episode II - Attack of the Clones was released, George Lucas insisted that theatres would install digital projectors if they wanted to screen his movie.
Disney is truly holding all the cards here, as the studio not only controls Lucasfilm properties, but Marvel Studios and the vast collection of original Disney films that get rebooted and remade each year. With box office revenue down 5% so far this year, theatres have even less leverage than they did previously.
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