Lionsgate Seeking Payment

[Freemason220]

Lionsgate Seeks Blockbuster Rev-Share Revenue
25 Apr, 2011 By: Erik Gruenwedel

http://www.homemediamagazine.com/lio...-revenue-23776

Lionsgate is seeking payment from Dish Network for outstanding revenue-sharing agreements with Blockbuster Inc. involving dozens of DVD and Blu-ray Disc titles.

In the April 25 motion filed with U.S. Bankruptcy Court in New York, Lionsgate said Dish April 22 notified the Santa Monica, Calif.-based mini-major it would not honor any outstanding rev-share agreements, and that it had the right to sell all inventory as it saw fit.

Englewood, Colo.-based Dish April 6 acquired Dallas-based Blockbuster for $320 million.

Specifically, Lionsgate’s agreement with Blockbuster mandated revenue-payment up 28 weeks after a title shipped. Blockbuster had the right to continue renting and/or sell or destroy the discs (with box office above $15 million) thereafter.

“LGF respectfully requests that the court order [Blockbuster] and Dish to honor the remaining revenue share obligations under those agreements, or determine that the films in question were not subject to transfer where the revenue share period had not expired at the time of the default and termination of the post-petition agreements between LGF and the Debtors,” Lionsgate wrote in the motion.

Titles in question include DVD and Blu-ray releases since Oct. 25, 2010. They include: The Way Home, Winters Bone, Locked Down, Amor Dolor Y Viceversa, The Expendables, Madea’s Big Happy Family, The Winning Season, Frenemy, The Heavy, Legendary Assassin, Lena Baker Story, The Last Exorcism, Alpha & Omega, Buried, Triggerman, Saw: The Final Chapter, H1N1-Virus X, For Colored Girls, The Gunslingers, Crimenes de Lujuria, Shaun the Sheep: Spring Shenanigans, “Weeds,” Psych 9, Sword of War and “Nurse Jackie.”

Lionsgate stopped shipping new releases to Blockbuster Jan. 24.

Dish April 21 filed a motion seeking an extension on closing the acquisition. It also wants to prolong by 90 days the time it must decide whether to assume or reject leases of more than 1,100 stores. It separately filed motions to continue operations in about 575 Blockbuster stores.

[djblade]

Lionsgate can Kiss our bankruptcy @$$

[psycoma]

Originally Posted by djblade

Lionsgate can Kiss our bankruptcy @$$

I think I wouldn't be quite so flippant about that considering that even though they distribute "small" titles, those titles end up being some of the most in demand when they hit store shelves. Not sure about your locations, but Winter's Bone was on our Top 20 wall for what seemed like forever and was constantly out of stock. Those little diamonds in the rough account for a good deal of business when you get right down to it. They might not gross as much as the hollywood blockbusters and you might not get as much copy depth as the newest Movie Star vehicle but those smaller titles have much longer staying power with regard to rental duration. I can't count the number of times that a "huge" movie with 100+ copy depth got it's numbers gutted less than 30 days after release for PRP or field destroy while "little" movies like Winter's Bone continue to perform for months after release and cannot be kept in stock.

Lion's Gate (according to the quoted article) stopped sending movies in January. If DISH refuses to settle the debt with them, it's probably a good bet they're not going to just let that go away and start supplying again. And if one distributor pulls support from the company, who's to say which one might be next to do the same? Disney has hated dealing with Blockbuster for years, refusing to enter into any type of revenue sharing and limiting copy depth on their releases. That would be a pretty big pie wedge to lose.

[BBStoreMgr112233]

Originally Posted by psycoma

I think I wouldn't be quite so flippant about that considering that even though they distribute "small" titles, those titles end up being some of the most in demand when they hit store shelves. Not sure about your locations, but Winter's Bone was on our Top 20 wall for what seemed like forever and was constantly out of stock. Those little diamonds in the rough account for a good deal of business when you get right down to it. They might not gross as much as the hollywood blockbusters and you might not get as much copy depth as the newest Movie Star vehicle but those smaller titles have much longer staying power with regard to rental duration. I can't count the number of times that a "huge" movie with 100+ copy depth got it's numbers gutted less than 30 days after release for PRP or field destroy while "little" movies like Winter's Bone continue to perform for months after release and cannot be kept in stock.

Lion's Gate (according to the quoted article) stopped sending movies in January. If DISH refuses to settle the debt with them, it's probably a good bet they're not going to just let that go away and start supplying again. And if one distributor pulls support from the company, who's to say which one might be next to do the same? Disney has hated dealing with Blockbuster for years, refusing to enter into any type of revenue sharing and limiting copy depth on their releases. That would be a pretty big pie wedge to lose.

The supplying never ended. Rather than just protecting yourself with a disclaimer, why not do a little research so you know what you are talking about?

While some studios like the revenue sharing agreements, others do not. It isn't a matter of whether they hate dealing with Blockbuster, it is what they think is best for their company.

And so you understand, the writer of the article once again took for face value (as did you the article) what a court filing stated, and rather doing their field some justice by further researching their facts, they rushed to print another article. The only thing that stopped in Jan was the revenue sharing deals. Blockbuster continued to purchase any and all titles it was interested in and have carried numerous titles, including hits like The Next Three Days & For Colored Girls.

All product has been purchased up front from all studios for the last few months. Because of this and strict budgets regulated and controlled by Cobalt and the BK court, BB has had much smaller copy depth.

The courts approved today the amended sale agreement and it is expected the deal with Dish will close sometime today.

[johnlow71]

sorry about that lionsgate, because i like your studios. jlow................

[CheeseMan]

Originally Posted by djblade

Lionsgate can Kiss our bankruptcy @$$

Spoken from someone who makes $9 an hour. You go girl. And when Lionsgate does not send new movies and the 4 customers you have left go to Redbox, just remember your post. Whiny little girl.

[orbitdvd]

Originally Posted by BBStoreMgr112233

Blockbuster continued to purchase any and all titles it was interested in and have carried numerous titles, including hits like The Next Three Days & For Colored Girls.

Hmmm. For Colored Girls is one of the titles mentioned in the article.

[DavidNewlySL]

not to mention the 575 stores on that original list..(accept for a few that did quick closes today), are on the extended lease list.

So that original list isnt exactly the most accurate either :P

[CoffeeCup]

Welcome to Blockbuster, Dish Network NOW PAY FOR OUR DEBTS! Sorry, i mean YOUR debts now...

[djblade]

Originally Posted by CheeseMan

Spoken from someone who makes $9 an hour. You go girl. And when Lionsgate does not send new movies and the 4 customers you have left go to Redbox, just remember your post. Whiny little girl.

and they will be back because we also have 28 days window movies.