There’s no doubt that Disney’s “Star Wars: The Last Jedi” is poised to be a box-office titan of gargantuan proportions and one of the year’s biggest films. Combined with their Marvel and Pixar catalog, Disney is easily the biggest film distributor on the planet with immense power – and now they’re exercising it.
A new report in The Wall Street Journal claims that the company is forcing theaters to agree to secret terms which some theater owners dub the most onerous they’ve ever seen.
Those terms include the fact that Disney will receive 65% of revenue from ticket sales, the highest percentage a Hollywood studio has ever demanded (domestically the rate is normally 55-60%). They are also forcing theaters to screen the film in their largest auditorium for at least four weeks (Disney movies typically only require a two week commitment).
If any theater breaks any condition of the agreement, which could include pulling just one screening from the schedule, the studio will charge a 5% penalty fee – uppting their take to a staggering 70% of ticket sale revenue. The agreements were all signed prior to tickets being made available for sale.
“Star Wars: The Last Jedi” will open on December 15th.