Warner Bros. has created some waves in Hollywood after the announcement of its new release model- streaming the blockbuster movie on their streaming platform HBO Max on the same day of release in theaters. This year has been a very challenging year for the world and especially for the film industry. The theaters are still closed in some parts of the world and collected around 96% less revenue than last year. Moviegoers and industry people are concerned for its future, while production houses delay the release of the big movies for 2021 or later.
Many are speculating that the new release model of Warner Bros. will destroy the already crippled theaters. However, the studio suggests that the model is only for 2021 and won’t be extended further. Still, the industry and major associations are blaming Warner Bros. for not informing or discussing the model before the announcement. Filmmakers like Christopher Nolan and Denis Villeneuve, who have been collaborating with the studio for a long time, painted it and its parent company AT&T as greedy. The directors claim that the studio wants to take over the industry and start a monopoly without even giving the theaters a fair chance to fight.
In addition to the outrage of filmmakers and other creative people associated with the industry, including theater owners, other organizations and the DGA also have condemned the deal and threatened legal actions against the studio. Although the criticism does miss and ignore the realities of the industry’s current situation and the whole details of the model proposed by HBO Max.
It Was A Necessary Business Decision
Warner Bros. has spent billions of dollars on movies and this year is one of the worst years for box office collection. Christopher Nolan’s Tenet, released in September, was expected to attract the audience towards the theatres. However, things turned out different, and the project failed to break even the production cost. Warner Bros. later decided to release the movie on HBO Max to recover the production money.
Due to the fear of spreading coronavirus, the theaters are closed in some portions of the world, and the government has made it illegal to attend the film in public places. The open theaters are doing minimal business which many are losing money by opening.
After the news of COVID-19 vaccine approval, there is little hope, but that hasn’t drastically changed anything. People are still afraid to come back to the cinemas, and the studio does not want to delay the release anymore.
In many aspects, the release of movies on the streaming platform is more profitable than in theaters. The studio has to spend around 50% of the revenue generated on the theater groups and distributors. It is also essential for Warner Bros. to grow their streaming platform, HBO Max. Hence the decision seems a profitable and logical move for the studio. However, the decisions might affect the theater groups and may also shake the business of theater owners. The new model will give financial stability to Warner Bros.
Why Is The Industry Mad About The “New Release Model�
The outrage from Villeneuve and Nolan is also understandable. Nolan has a special love for theatrical experience and has been outspokenly advocating the traditional big screens. According to the Oscar-winning director, the small screen of phones, laptops, or smart TVs cannot provide the authentic experience of a movie they can get in theatres. He also strongly opposed the release of his sci-fi film Tenet for the video-on-demand release. So anything that threatens theaters is bad for Nolan.
On the other hand, directors like Villeneuve and other industry people, including actors, and producers are upset as they have signed the contract expecting a theatrical release. Many of them were also promised the profit percentage out of the box office collection. And the sudden change in the plan is a breach of contract.
Some filmmakers boycotted Warner Bros. since the studio has not consulted or informed them before announcing the release plan.
Hopefully, the studio would soon find a solution and take appropriate measures to compensate the directors and stars under the new streaming model. To earn profit from video-on-demand release and to grow the streaming platform is acceptable. However, cutting artists’ pay is not.
Directors Are Missing The Point
Directors like Villeneuve and Nolan, who are highly criticizing the decision, are missing an important point. They are stating that WB will never release the film in theatres, which is not the point. The studio will simultaneously release the movies in theaters and on the streaming platform HBO Max. The films will be available on HBO Max for one month before returning to the theatres exclusively.
HBO Max is only available in the United States right now, where the theaters are doing the lowest business. The international theater is doing pretty better than the US. In September, Nolan’s Tenet collected around $300 million. So it will not be right to say that the studio is not giving them a chance to fight back.
However, it is also important to sit together and come to a negotiation so that nobody has to face any major loss.
Why Warner Bros. Did Not Discuss The New Plan
The economic necessity of the decision to release the projects on HBO Max and in theaters simultaneously is easy to understand. However, industry people complain that the studio has not discussed or informed them before making the announcement. Many got a 30-minute prior notice, and directors like Villeneuve found out the plan when the announcement hit the media.
Warner Bros. Media and AT&T are the primary decision-makers of the project, but they cannot typically make a plan without involving the concerning producers and directors. Whether Warner Bros. should or should not have consulted the directors first is a different question to ask. The industry thinks Warner Bros. thought it is best to keep it a secret. As there was a huge chance that the many would block it from happening, they decided to “ask forgiveness, not permission.â€
I’m David. I’m a software engineer living in New jersey, USA. I am a fan of technology, programming, and Cybersecurity. I’m also interested in gaming.
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