Opening day for The Passion: $26,556,573. Not too shabby. That's higher than what most were projecting. Box Office Mojo reports production costs as $30 million and marketing costs as $15 million. And I read elsewhere that in the first week, exhibitors turn over 70% of the revenue back to the distributor, and in the second week, they turn over 60%. After that, it tapers off.
I also read elsewhere (and now I can't find that stupid article! Dang it) that smaller distributors like Newmarket face problems getting exhibitors to pay up. Larger distributors do not face these problems, though, ordinarily because they have the muscle to not use the exhibitor in the future, and that threat is a credible one. It's credible because larger distributors are going to be sending movies like Titanic, Lord of the Rings, and Spider-man their way - certain blockbusters - and so it's in the best interest of the exhibitor to comply with the demands of the larger distributor. But small distributors like Newmarket don't have nearly this kind of credibility to their threats. "Either you pay us, or we won't let you show the really awesome, obscure arthouse movie that we're releasing this summer."
What I don't understand, though, is why distributors can't just sue the exhibitors. I mean, if they're contractually obligated to turn over those 60-70% in the opening weeks, then how are they able to get away with not? Anyone know more about this?
Posted by scott at February 26, 2004 03:49 PM | TrackBackUm, they can't sue because they can't afford to sue. That's my guess. When you're several million in the hole, I don't think you can afford lawyers good enough to get your money back.
But it's just a guess.
Posted by: Josh S at February 26, 2004 09:49 PM