Studios Planning To Take Bigger Share Of Box Office Revenue

Movie theater owners who may have been hoping to negotiate a larger share of the box-office split with studios in return for allowing premium video-on-demand are likely to see their hopes dashed this summer when the studios begin demanding a larger share themselves, according to BTIG Research analyst Richard Greenfield. In a note to clients on Monday, Greenfield predicted that Paramount will lead the way since it has a slate of summer blockbusters that "exhibitors simply have to have." They include Transformers 3D, Super 8, Kung fu Panda 2, Thor, and Captain America. However, Greenfield commented, "We believe the best way for the studios to successfully shift splits is for several to make the move at the same time, making it virtually impossible for the exhibitors to retaliate." Greenfield said that a shift in the split to about 60-40 (it currently is around 50-50) is necessary if the studios are to offset the continued erosion of the DVD market.

22/03/2011


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Tags: Paramount Pictures - Panda - Thor - Transformers

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