This December, Star Wars: The Last Jedi will be the most anticipated movie this holiday season, and possibly this year. Movie theaters are already scrambling to advertise and are selling out opening night tickets left and right. However, due to some high demands from Disney, some smaller theaters may not be able to show the film.
Disney had been hitting a higher cost to play Star Wars: The Last Jedi, and it could really hurt some theaters, especially smaller ones. According to The Wall Street Journal, Disney will require theaters to come to an agreement with them before being allowed to show Star Wars: The Last Jedi. Disney wants to receive 65% of all ticket revenue earned from the newest Star Wars film. Disney also requires the movie to be shown in a theater’s largest auditorium for at least four weeks. Oh, and don’t even think about breaking any part of that agreement, because the theater will then owe an additional 5% on top of the 65% cut.
To put things in perspective, most theaters usually only pay anywhere from 55 to 60 percent of revenue. The amount depends on the projected popularity of the film. The price hike could be huge for smaller theaters. Even the auditorium requirement could be tricky, as most small theaters only have a couple of auditoriums, and not a huge number of customers.
It’s certainly a “damned if you do, damned if you don’t” situation for these smaller theaters. If they don’t show the film, they could really miss out on some revenue because this movie will be huge. However, how much would they really be able to profit from if they are giving more than half of their earnings to Disney? Would this really be a wise financial move for them?
What do you nerds think? Is Disney wrong for these price hikes? Would you feel disappointed if your local, smaller theater was not showing Star Wars: The Last Jedi? Give us your thoughts in the comments.