Breaking... Warner Bros entire slate of 2021 films to be released same day on HBOMAX .. Holy Shit

APOPHIS

Autodidact / Polymath
Platinum Member
I may be completely off on this, but the way that I understand it to work is the film companies sell the movie to theatres, and the theatres make their money by selling tickets. I don't think film companies get a share of the ticket price. The movie companies in this case perhaps figured it's more profitable to sell to the streaming sites under different terms.

I will research it some more.
If anyone has additional insight or a better understanding of this process, please elaborate.


**PROCESS**

It has long been stated that movie theaters only keep 10% of the box office sales. It’s not that bad, and it’s not that simple. In practice, it really depends on the specifics of the negotiated contract. The distributor/studio makes separate deals with the various theatres. The terms are generally undisclosed. My personal observation is limited and possibly outdated by now but, as I saw it, theaters actually get to keep more than 10%.

For starters, there’s a “house allowance,” which the theater keeps to cover the “overhead” expenses associated with showing movies (e.g. electricity and staffing). I’ve seen this figure calculated based on the number of seats in whatever specific auditorium the movie is playing in. The value of each seat is a negotiated value. The point is to minimize the extent to which the theatre is financially exposed. The house allowance ensures that if nobody comes to see the movie, the theatre won’t lose the money spent on lights, air-conditioning, etc. They’ll make ends meet.

The house allowance is subtracted from the actual ticket sales, and the remaining money is divided or “split” between the distributor and theatre in an agreed-upon fashion.

For a typical release, the split might be 90/10 for the first x weekend(s) during which time the studio gets 90% and the theatre keeps 10%. The ratio gradually becomes more favorable to the cinema over time. [Unfortunately, movies don’t stay in theaters as long as they once did. The original Star Wars, for example, stayed in theaters for over a year. So, unless this “sliding scale” arrangement has been updated, it means the studio gets the lion’s share of today’s box office.]

In order to compete for the right to play a highly-anticipated blockbuster, the cinema might need to “guarantee” a certain dollar amount to the studio. Let’s imagine there are two theaters in close proximity—that is, they are in the same “catchment area”—and each of them wants to play the next big superhero movie. Theatre #1 might guarantee the studio $50,000, whereas Theatre #2 might make a $60,000 bid. In that case, Theatre #2 wins the movie. In this example, the “split” will remain in the studio’s favor until the studio has been paid the $60,000 that was promised. [Exception: If the movie fails to attract audiences, Theatre #2 might opt to simply pay off the guarantee and cut their losses, as dropping a bad movie gives them the freedom to utilize that screen to play a movie that’s performing better. Alternatively, the studio could counter with more favorable terms in an effort to keep the movie playing.]

So, with studios getting preferential treatment at the box office, how does the cinema make a profit?

Concessions.

Cinemas are essentially in the snack-food industry. The movie is simply the attraction. (Hence the term “Coming Attractions.”) A good movie brings people out to the theatre. A considerable portion of those folks will buy snacks. The snacks—especially popcorn and fountain beverages—are marked-up by a large enough margin to ensure profitability, taking into account not only the cost of the food items, but also the high cost of operating the entire cinema facility
 

Day_Carver

Rising Star
BGOL Investor
I hear you but remember that Mulan sh*t aint work for disney+

now it wasn't a FAILURE but it was FAR from a success...

I don't know what the price should be but $17 is too damn high

ESPECIALLY if it isn't available on all the streaming services
But do we really know if it worked or not? What were the numbers? Plus Milan is a big difference than say an avengers movie. But we all know they probably would never release an avengers movie like that...
 

D'Evils

Rising Star
BGOL Investor
I hear you butI don;t know...

Amazon and Disney+ hit that sweet spot to become STAPLES already.

And don't be surprised if Disney hikes their price up in a year or 2...

Disney+ is about to have way more content to offer than HBO Max... Rumor has it they are about to get a 18+/Adult/Mature profile option ...

Which means all of 20th Century content will be on D+... (Aliens, Predator, Die Hard, Deadpool, etc...)

And with Indiana Jones leaving Netflix... strong bet D+ will get the new streaming rights...
 

cold-n-cocky

BGOL vet down since the “56k stay out!” days
BGOL Gold Member
I mean, the average home TV screens nowadays STARTS at 50-60 inches and only goes up, with projectors getting you above 100”; plus you can get a 5.1 surround sound system with wireless rear speakers that pushes out Dolby Atoms sound for as low as $199 (Vizio). And the average American is not an audiophile or videophile, so the “big screen” home TV and unlimited home snacks are more than sufficient.

Yeah, COVID dealing all kinds of death blows across the landscape; human and otherwise. :smh:



Now I need :

Bigger and better TV

gourmet popcorn machine

Updated slurpee machine

add on

-Leather TV chairs

-Premium liquor and beer (this was/is the theaters modern add-on to the experience; marked up drinks)

-Humidor for movie cigars
 
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Day_Carver

Rising Star
BGOL Investor
I hear you but I could LEGIT see people PAYING for this...

Roku is out but a Nvidia Shield?

Smart TV?

If HBO MAX is available on there?

MOST people will just PAY it.

cause think

amazon Prime, Disney+ (Hulu ESPN bundle) and HBO Max..

WTF else you need?

Prime comes with membership, bundle like 12 and
I guess Netflix and thats it. Im the wrong to ask though because I don't really watch TV
 

jasonblacc

Rising Star
Registered
Misleading thread title. They are releasing the films in theaters AND HBO Max at the same time.

They are NOT releasing all the films on HBO Max at the same time.


That would’ve been amazing


Would had people taking weeks off to binge watch movies
 

Chitownheadbusa

♏|God|♏
BGOL Investor
still going to see that "Newark movie" in the theater. the introvert in me thinks this HBO deal is great. the creation of a more anti social society.....I can sit in the house and do this and that, but the experience of being out with people, minus some new technology, like a streaming service, is needed from time to time.

Btw, youll only view the movie on HBO max for a month...and it wont come back to cable until it official leaves the theater. HBO Max wasnt doing big numbers priors to this. so the thought is that theyll be able to keep new subscribers most of next year, because in order to see all warner brothers movies, youll more than likely need to have the service for the entire year....since each movie will be released monthly.

Food delivery companies because Netflix and chill will on overload.

yep. on another note, anyone not taking notes of what companies blew up once the covid19 hustle started are dumb af.
 
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the13thround

Rising Star
Platinum Member
I'm sure the execs simply played it out and saw the inevitability of it, and, taking into account lessons learned from the Kodak, Blockbuster, etc.
Probably figured they couldn't afford to NOT do this.
Still doesn't take away from the shock - especially of this happening now, so soon.
 

veritech

Black Votes Matter!
Platinum Member
But we all know they probably would never release an avengers movie like that...

193deb2f52a87785e06cc1f6dfe4d78b.gif
 

0utsyder

Rising Star
BGOL Investor
No wonder they told Roku etc

f*ck you pay me...

this must have been in the works for a minute.

But those folks that invested so heavily in Roku players can't play HBOMax. Which means they're missing out on those views. Comcast Universal tried to go that route too with Peacock, but Peacock is now on Roku
 

playahaitian

Rising Star
Certified Pussy Poster
And don't be surprised if Disney hikes their price up in a year or 2...

Disney+ is about to have way more content to offer than HBO Max... Rumor has it they are about to get a 18+/Adult/Mature profile option ...

Which means all of 20th Century content will be on D+... (Aliens, Predator, Die Hard, Deadpool, etc...)

And with Indiana Jones leaving Netflix... strong bet D+ will get the new streaming rights...

FACTS



 

playahaitian

Rising Star
Certified Pussy Poster
And don't be surprised if Disney hikes their price up in a year or 2...

Disney+ is about to have way more content to offer than HBO Max... Rumor has it they are about to get a 18+/Adult/Mature profile option ...

Which means all of 20th Century content will be on D+... (Aliens, Predator, Die Hard, Deadpool, etc...)

And with Indiana Jones leaving Netflix... strong bet D+ will get the new streaming rights...

that to be expected

but NOT before they take a CLOSE look at the landscape

they WANT to become ESENTIAL that is Disney standard operating procedure

and FAMILY

no matter how INSANE it si to go to the ACTUAL parks?

they make SURE that even the poorest kids will always have access to content.

they KNOW BETTER.
 

playahaitian

Rising Star
Certified Pussy Poster
But do we really know if it worked or not? What were the numbers? Plus Milan is a big difference than say an avengers movie. But we all know they probably would never release an avengers movie like that...

they will NEVER release the REAL numbers

but I'n sure there is a LEAK somewhere.

We gonna see..

if they release Black Widow on Disney+

:itsawrap:
 

HAR125LEM

Rising Star
Platinum Member
Maybe a few of US should start a Home Theater Forum.
Since the Writing's obviously on the wall now.

New York City theaters haven't been opened for months now.
And I've been having serious IMAX/Dolby Cinema withdrawal symptoms.

The other aspect of all of this the shortening of the physical media release window after a film's run.
I already plan on buying "TENET"
Especially since I've been holding off on doing any pirate downloads on it.
As I will with "WW 1984" and a few other films down the line.
 

joneblaze

Rising Star
BGOL Investor
THIS IS THE WAY....DISNEY...AND EVERYOTHER STUDIO
Looking forward to

Denzel Washington’s The Little Things, Judas and the Black Messiah, Godzilla vs. Kong, Mortal Kombat, Those Who Wish Me Dead, The Suicide Squad, Reminiscence, Dune, The Many Saints of Newark, King Richard, Cry Macho and Matrix 4.
 

gdatruth

A Man Apart
Certified Pussy Poster
I am shocked by this
either WB/AT&T realize 2021 will not be the bounce back some hoped for or they are willing to take losses on their films (when the were taking Ls anyway) for the long-term gain of building their subscription base. They are hoping ppl sign-up to watch wonder woman (or finally get the app since alot ppl get for free but dont know they do). Start using and forget to cancel. Or keep it because their is another big block buster coming out and the price HBO Max is the same as the price for a movie ticket in big cities.

Disney got Disney+ & Hulu
WB/AT&T has HBO Max
Paramount/Viacom have CBS Access
Comcast/Universal has Peacock
Netflix is Netflix
Amazon is Amazon Prime
Apple is Apple TV
& Qubi is dead

Netflix had the biggest headstart and Disney got the best family friendly library
now its up to the rest to get in the game. Honestly I am suprised HBO Max hasnt done better. And wonder how much of it is due to Roku/Firestick issue, the confusion of their roll-out (at one point there was HBO, HBO Go & HBO Max) and how many got it but dont know they got it


btw they need to stop bullshting and their Cinemax libary (Banshee, the Knick, Strikeback) and make Warrior an HBO Max show
 
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Deezz

Rising Star
BGOL Investor
I get going to the theatre is an experience, but with folks being able to buy a 55in TV for a few hundred dollars, going to the movies is not that big of deal for a lot of people.

Even if there was no COVID, I was good w/ not going to the theatre for a lot of movies.
 

Aww Skeet Skeet!

The antithesis of nonsense.
BGOL Investor
This is cool and all but my home theater needs lossless audio and 4k video. The internet is the limiting factor. And I run Fios 300/300. And with multiple folks streaming shit... :angry:
 

TENT

Rising Star
BGOL Investor
Somehow doesn't sound like it makes financial sense. Hmmm you might be on to something.

I'm confused, and this is mostly because of how HBO Max is just confusing in general. So when these new movies are released in theatres is Warner saying they will be released on HBO Max like a PPV option like how Disney+ charged $30 to watch Mulan? Or are they saying when these movies are released in theaters, if you have an HBO Max subscription you can watch them outright, no extra charge.

Somehow that doesn't sound like it makes financial sense, unless Warner shorted AMC stock or something. It's like a bootleg MoviePass situation.
 
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