Bold move that will surely help HBO Max subscriptions but I also feel come June and July, WarnerMedia reevaluates this model based on if the vaccine helps get people back to theaters. https://twitter.com/deadline/status/1334565710400548870
Here is the one thing no one is talking about, backend deals. Stars may not be getting first dollar gross anymore but money made off box office receipts for a handful stars/directors/producers is still very much in each persons contract.
You just can’t move LITTLE THINGS to HBO Max and not pay Denzel what he was expecting from box office returns and you can almost guarantee Rami, Leto and the director are also due a check as well.
When Paramount sells COMING TO AMERICA 2 to Amazon, part of that big deal is to cover those back ends for Eddie and company so they cover the cost they aren’t making by not releasing in theaters.
Why do you think Ryan Reynolds made 26 million on 6 UNDERGROUND, to cover that back end he isn’t getting from the theatrical release. My hunch is if people do return to theaters, this model is readjusted in some form where certain films either go day-date or get to theaters first
International box office may help with a portion of this but because domestic box Office is such a large portion of that pie what’s to stop Denzel’s rep from calling up and be like “we’ll take an additional $10 million please.”
I keep mentioning Denzel so much because his deal, along with Leo’s, is still so ironclad even as times have changed over the years and since his movie will be one of the first to air on Max, what he gets in return will surely set the bar for what other stars ask for I return
One other repercussion that may occur because this announcement, does this make Nolan a free agent? WB has been his home for most of his career and wonder if the this forces him to look for a new home. We shall see...
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