Two of the largest movie theater chains are fighting with Disney (NYSE:DIS) over the way revenue is split for advance tickets.
At issue is a new effort by Disney to renegotiate the terms under which the studio and theaters share revenue. In a typical deal, the studio can get more than half of the revenue for advance and opening weekend sales. The two chains — which combine to control more than 12,000 screens in the U.S. — say that Disney is seeking to increase its percentage too much.
“It goes well beyond anything I have seen in my time in the industry,” Gerry Lopez, CEO of AMC said. “It’s enough for us to pause and push back.” Reports say that Disney is attempting to force the theaters to accept the higher rates for all its films, not just Iron Man 3.
The fourth largest movie chain, Carmike Cinemas (NASDAQ:CKEC), reached a settlement with Disney over a similar matter last Thursday.