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- Disney is requiring movie theaters that show “The Last Jedi” hand over 65% of ticket sale revenue, and play it in their largest auditoriums for at least four weeks. Some small independent theaters are deciding not to show it.
When you are the king of the mountain, you can declare some unusual terms – and that’s exactly what Disney is doing when it comes to releasing “Star Wars: The Last Jedi,” some theater owners said.
Even though Disney releases, including its “Star Wars” movies, have been a godsend to the movie theater business, which has seen a decrease in ticket sales over the last few years, some theater owners believe the requirements the studio is forcing on them to play “The Last Jedi” have gone too far.
According to The Wall Street Journal, movie theaters can show “The Last Jedi” only if they agree that Disney gets 65% of ticket sale revenue, which is the largest cut a studio has ever asked from theaters. They also have to show the movie in their largest auditoriums for at least four weeks.
Ignoring these terms would lead to Disney charging the theater an additional 5% (so that means Disney would take 70% of sales).
For major multiplexes, these requirements aren’t deal-breakers. But for small independent theaters, this could cripple their business. So some independently-owned theaters have decided not to play “The Last Jedi,” according to The Wall Street Journal.
Most theaters send 55%-60% of ticket sales back to studios, depending on if the movie is a major blockbuster or not.
Business Insider reached out to Disney for comment but did not get an immediate response.