Not divided 5%: foreign cinema in Russia will be at the box office for only two weeks


The distributor of films Universal Pictures International and the heads of the largest movie theater chains in Russia (Formula Kino, Cinema Park, Kinomax and Karo) could not agree on the terms of distribution of future releases – a source told Kommersant news outlet closely associated with the cinema market. The reason for the conflict is that the publisher wants to receive half of the profit (50%) from the distribution of films even after two weeks from the premiere, while the cinema chains are not willing to give up the profit. Because of this, with a high degree of probability, Universal and Warner Bros. in Russia they will show only two weeks.

The fact is that at the moment it is common practice when in the first two weeks of rental cinemas and the publisher receive 50% of the impressions. At the end of two weeks, the percentage of the publisher’s profit usually drops – to 45%, that is, it becomes 5% less. That’s just the employees of Universal Pictures International, becoming the only partner of Warner Bros. for the rental of films in cinemas in Russia, announced to large chains that the publisher wants to receive 50% of the profits during the third week of screenings. Immediately after this announcement, major networks took off the schedule for the third week of shows of “Godzilla vs. Kong” and “Mortal Kombat”.

Oleg Berezin, head of the Cinema Owners Association, said that the additional 5% of profits is quite important for cinemas due to the fact that in the third week of screenings the attendance is usually lower than in the first two weeks. Accordingly, with a smaller number of viewers due to the additional percentage of screenings, cinemas do not lose profit:

“If there are fewer viewers than in the first two weeks, then the new proportion allows cinemas to make these screenings more economically attractive,” Berezin said.

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