The End

[JustTheFacts]

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.

[KAWLIGA]

Business as usual...Push those bundles.

[BBStoreMgr112233]

Originally Posted by JustTheFacts

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.

Old news. The motion was filed Friday. And Fox is so worried they gave us Love and Other Drugs prior to the ruling on this motion. It is already in pool point and on the way.

[BlockbusterLuvsU]

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??

[Nicholas R Miller]

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!

[orbitdvd]

Originally Posted by Nicholas R Miller

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!

Here they come.

[johnlow71]

the beginning ......................

[Veruka_Salt]

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.

[Nicholas R Miller]

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.

[HelloItsMeMOM]

Sooo ... I wonder if they can dip into Keyes salary to pay the movie companies. Just a thought LOL