- Warner Bros. is working on deals for new payments to directors and their teams, based in part on HBO Max’s streaming fees, according to numerous reports.
- The deals will “increase the chances of results-based bonuses” for box office sales, Bloomberg reported on Saturday.
- The legendary Entertainment “Godzilla vs. Kong” is at the heart of the current negotiations, according to The Hollywood Reporter.
- “I strongly believe that the future of cinema will be on the big screen, no matter what any Wall Street amateur says,” Denis Villeneuve, Dune’s director, told Variety in December.
- Visit the Business Insider homepage for more stories.
According to numerous reports, Warner Bros. agrees to new payment structures for filmmakers and their teams based in part on HBO Max̵
The studio surprised Hollywood in December by announcing that its entire 2021 range would be released on its HBO Max streaming service. The films, including “The Matrix 4”, “Space Jam: A New Legacy” and “Dune”, will hit theaters on the same days as their streaming debuts.
Now Warner Bros. is in the process of changing deals with partners to “guarantee payment regardless of cash sales and increase the chances of performance-based bonuses,” Bloomberg reported on Saturday.
Read more: The CEO responsible for HBO Max shatters Hollywood’s shocking decision to release all of Warner Bros. movies. from 2021 both in streaming and in cinemas: “Predictability is at a premium”
These bonuses are traditionally associated with the success of the box office. In the Warner Bros. list. from 2021, there are several films that would be considered tents if they were released in theaters more traditionally.
The legendary Entertainment “Godzilla vs. Kong” is at the heart of the negotiations, according to The Hollywood Reporter.
Forbes said the film had a monstrous budget of about $ 180 million, while the Hollywood Reporter said it was closer to $ 200 million. You are expected to earn more than this if they are released exclusively in cinemas. It’s a sequel to “Godzilla: King of the Monsters” and “Kong: Skull Island,” which grossed $ 387 million and $ 567 million, respectively, in theaters worldwide, according to Box Office Mojo.
The legendary tried to sell “Godzilla vs. Kong” on Netflix for $ 225 million, but Warner Bros. has stopped the deal, according to Forbes. Now it looks like Warner Bros. and Legendary can make a deal.
According to the deal, HBO Max will pay Warner Bros. a fee for streaming movies, some of which will go to film production partners, directors, cast and crews, according to Bloomberg.
The deal would also halve the box office sales that the film will have to achieve before partners can start earning bonuses, according to Bloomberg.
It is not clear from the reports whether all the directors and production companies involved in Warner Bros. from 2021, will agree to the new deal.
Dune director Denis Villeneuve, for example, wrote a scathing essay on Variety after the announcement of HBO Max. He said the decision by AT&T, the corporate parent of Warner Bros., was a “victim”.
“I strongly believe that the future of cinema will be on the big screen, no matter what a Wall Street amateur says,” Villeneuve wrote.
HBO Max released “Wonder Woman 1984” on Christmas Day, the same day it hit theaters. The film made over $ 16 million in its first weekend, the best discovery during the pandemic.
Disclosure: Mathias Döpfner, CEO of Business Insider’s parent company, Axel Springer, is a board member of Netflix.