This is How WarnerMedia Plans to Pay Filmmakers For Movies Released on HBO Max Same Day As Theaters
It seems WarnerMedia is looking to make sure they don’t burn bridges following their decision to simultaneously premiere their entire 2021 film slate in theaters and on HBO Max. According to Bloomberg, the company has come up with a way of compensating filmmakers whose movies have been affected by the pandemic and will be on the streaming service.
The media conglomerate is starting by adjusting terms of their deals and guaranteeing that their partners are compensated no matter how the movie performs at the box office. The company will also compensate “a larger group of cast and crew money based on fees it collects from HBO Max” sources told Bloomberg.
“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,” Bloomberg reports.
Though the company is currently trying to get people on board with its temporary solution, they may face other problems should the decision prove to be successful. Their partners may get used to guaranteed payments, which the studio won’t be able to sustain in the longterm as they plans getting back to the regular model after 2021.
WarnerMedia announced on Dec. 3 that they will be releasing their entire slate of movies simultaneously on HBO Max and in-theaters. For streaming customers, they will be able to watch new release films on HBO Max for one month after their debut. Films such as Godzilla vs. Kong, The Suicide Squad, Space Jam: A New Legacy, Dune and Matrix 4 will all premiere on HBO Max the same day they hit theaters.