After causing a ruckus about Warner’s decision to release the title day-and-date on HBO Max, the producers of “Godzilla vs. Kong” have near reached an agreement with the studio that will see them
paid off remunerated over release plans they didn’t initially agree to.
Legendary Entertainment are reportedly close to accepting a financial offer allowing Warner Bros. Pictures to release the monster-movie sequel on both HBO Max and theaters on May 21.
Following the news that Warner Bros had opted to release all their theatrical releases this year on HBO Max, Legendary – who also produced the upcoming “Dune” for the studio – kicked a stink up, threatening to pursue legal action over the change.
Considering the huge budget of the film, reports suggest Legendary are going to nab somewhere around the $200 million plus range as part of the settlement.
In addition, Bloomberg reveals that others affected by the new distribution model will also be handsomely compensated.
HBO Max, the studio has adjusted terms of its deals with partners to guarantee payment regardless of box-office sales and to increase the odds of performance-based bonuses. Warner Bros will also pay a larger group of cast and crew money based on fees it collects from HBO Max, according to people with knowledge of the studio’s plans.
Here’s how it will work, according to the people familiar with the situation: When movies come out this year, anyone entitled to a bonus will receive one at half the box-office revenue that would normally be needed to trigger a payout. And if more theaters close down, the threshold will fall further — a stipulation called the “Covid-19 multiplier.” Those who would normally participate in profits from box-office receipts will continue to do so, as well as benefit from on-demand and online sales.
HBO Max will pay Warner Bros. a fee for its 31-day window, and the money from that will be shared with not just profit participants, but cast and crew. Both businesses are part of AT&T Inc.’s WarnerMedia, run by streaming veteran Jason Kilar.
Other filmmakers said to be shitty about the HBO Max plan include Denis Velleneuve, who wants an exclusive theatrical bow for “Dune”, and Lana Wachowski, who doesn’t want her fourth “Matrix” movies going straight to streaming.