Par Agrees to Video Revenue Share For Short Window

By Robert Marich
   July 8, 2015—Paramount Pictures agreed to let two theater chains share in video revenue of two second-tier theatrical films, in exchange for theaters agreeing to a short window between theatrical premiere and video. Video run will start 17 days after the screen count for each falls under 300 screens. Typically, the theater-to-video window is a minimum of 12 weeks, and this new arrangement looks to be about six weeks.
   “Under the agreement, Paramount titles, Paranormal Activity: The Ghost Dimension and Scouts Guide To The Zombie Apocalypse will be
Early promotional art for Paramount's Paranormal Activity: The Ghost Dimension

given a wide release this fall with a comprehensive marketing plan, with digital home entertainment purchase  available 17 days after the film dips below 300 domestic theatres,” says a press release.  “AMC and Cineplex and other exhibitors will receive a percentage of any of the studio’s digital revenue for the period of digital availability through 90 days from the initial U.S. theatrical release, with each exhibitor’s share proportional to its theatrical gross market share. Paramount said it is in discussions with other exhibitors and would offer them a similar arrangement for these two films.”
   Paranormal is penciled in for Oct. 23 theatrical premiere and Scouts Guide on Oct. 30. Paranormal-Ghost is the fifth installment of the horror franchise.
   AMC is the major U.S. theater circuit known for its large megaplex theaters; Cineplex is Canada’s dominant movie exhibitor.
       What’s new here? For one, a major studio allows theaters to share in its video-on-demand revenue (which is underlined above). Also, while indie films employ short windows all the time (but their theatrical runs are usually minor), Paramount is a major studio. However, its two involved films are in the horror genre that is indie-like.
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