#1
|
|||
|
|||
The End
Court Orders Blockbuster to Establish Fox Escrow Account
By : Erik Gruenwedel | Posted: 22 Feb 2011 egruenwedel@questex.com Studio had sought more than $24 Million in rev-share funds. A federal bankruptcy judge has ordered Blockbuster to create an escrow account to reimburse 20th Century Fox Home Entertainment its portion of a revenue-sharing agreement. The studio Feb. 18 filed a motion in U.S. Bankruptcy Court in New York asking that Blockbuster “sequester” the funds required to pay the studio about $24 million in revenue-sharing funds. The motion — filed three days before Blockbuster put itself up for sale — claimed the Dallas-based rental icon entered into a rev-share agreement with Fox on Aug. 28, 2005, mandating it pay a pre-determined (confidential) amount per rental transaction. Don Jeffries, SVP of distribution for Fox Home Entertainment, said the motion was filed after Blockbuster informed him in January that it would not be able to pay the rev-share funds per instructions from its debtor-in-financing lenders. Going forward, Fox contends Blockbuster also would not be able to pay almost $7 million in rev-share monies generated by the studio’s discs. “Blockbuster’s latest actions indicate that there is at least a significant risk, if not a complete certainty, that Blockbuster will not turn over the revenue to Fox,” the complaint read. The studio said that with each passing week, movie discs lose appreciable value similar to a new car driven off the lot and subsequent depreciation with each mile driven. |
#2
|
|||
|
|||
Business as usual...Push those bundles.
__________________
KAWLIGA.......I'm not done until they're done. |
The Following 2 Users Say Thank You to KAWLIGA For This Useful Post: | ||
Ghost of AtlanticVamp (February 23rd, 2011), Gonzo (February 23rd, 2011) |
#3
|
|||
|
|||
Quote:
|
#4
|
||||
|
||||
I don't understand why, if they had a $125 million DIP loan they didn't use and now can't because they let it expire, didn't they use it to pay off the studios??
__________________
No thanks, I don't rent enough. Disclaimer: The postings on this site are my own and do not represent Blockbuster's or Dish Network's positions, strategies or opinions, because they are all a bunch of dickless idiots. |
#5
|
|||
|
|||
Here is a link to an article about Universal demanding payment for shipped items:
http://www.homemediamagazine.com/uni...ay-discs-22057 at the end of the story it states that the DIP ordered payments stopped! |
#6
|
|||
|
|||
Quote:
|
#7
|
||||
|
||||
the beginning ......................
__________________
[SIGPIC][/SIGPIC] I dont know maybe i could go to school and become a civil engineer, Design septic tanks for playgrounds. So little kids can take a shit! |
#8
|
||||
|
||||
I imagine this was the last resort for the major studios. I don't think any of them wanted Blockbuster to fail because we provide them with best profit return. Netflix and kiosks offer them pennies (I don't know about cable VOD but I assume it's not as good). Then with torrent sites and video piracy... well, it's kind of a perfect storm for them. I imagine the studios realized (or accepted) that Blockbuster really is dead and will not repay them and cannot be resurrected as the cash cow it was in the 90s/early 00s. So yes, it seems the fat lady is finally singing.
__________________
Life is not one thing after another, it's the same God damn thing over and over -- Dorothy Parker |
#9
|
|||
|
|||
There is a hearing tomorrow in Bankruptcy court regarding what they owe Summit, I wouldn't be at all suprised if the other studios made an appearance in Summit's favor. I also can't help but wonder how much BB owes the other major studios such as Warner and Paramount!
I think the next step for the studios is to demand payment up front for product or stop shipments completely. |
#10
|
||||
|
||||
Sooo ... I wonder if they can dip into Keyes salary to pay the movie companies. Just a thought LOL
__________________
For those who believe no explanation is necessary.
For those who do not, no explanation is enough. |
The Following User Says Thank You to HelloItsMeMOM For This Useful Post: | ||
OzMan (February 24th, 2011) |
Bookmarks |
Thread Tools | |
Display Modes | |
|
|