Warner Bros. to give talent in HBO Max movies upfront

A lot of things happened in 2021 that rocked the movie industry. The ongoing COVID-19 pandemic has forced film studios and theaters to finally come to terms with the fact that they need to talk about the issue of streaming. They were unfortunately not prepared for this which is why it took someone so long to find a solution. Some studios, like Universal and Sony, have decided to delay everything for a year and hope 2021 will be better. Like Disney and Warner Bros., others have turned to streaming and their own streaming services to try and make a difference. Warner Bros. decided to release Wonder Woman 1984 on HBO Max and in theaters at the same time and move their entire 2021 slate to hybrid versions. To say that this caused an uproar would be an understatement. Warner Bros. has spent the last few weeks trying to appease talented angry people over this change and even possibly get Legendary to take legal action against them.

One of the reasons it’s so bad is the way movies pay people. There’s the upfront payment that talent receives and the residue that comes from the box office. There’s no denying that the rollout of HBO Max will have an impact on the box office, reducing people residue. They treated Wonder Woman 1984 giving the talent a $ 10 million upfront, but that sort of deal hasn’t been made with the other 2021 films. It looks like upfront fees may be part of the norm going forward. According to Bloomberg, Warner Bros. and HBO Max’s new plan is to give every talent whose movies open on HBO Max and theaters an upfront royalty.

Here’s how it will work, according to people familiar with the situation: When the films release this year, anyone eligible for a bonus will receive one to half of the box office revenue that would normally be required to trigger a payout. And if more theaters close, the threshold will drop further – a stipulation called the ‘Covid-19 multiplier’. Those who would normally participate in the profits of box office receipts will continue to do so, while benefiting from on-demand and online sales.

HBO Max will pay Warner Bros. a fee for its 31-day window, and the resulting money will be shared not only with the benefit participants, but also with the cast and crew. Both companies are part of AT&T Inc.’s WarnerMedia, run by streaming veteran Jason Kilar.

So Warner Bros. will spend a month essentially giving bonuses to talent for their films on HBO Max, perhaps the idea being that the box office will get a boost once that 31-day window is over. However, there is a good chance that this will not happen. People loyal to theaters will go to see movies like Dune or The suicide squad in theaters, but repeated viewing will hurt the most. Some people will want to see the movie a second time in theaters, but a lot of people have had their theatrical experience, and now they just want to watch their new favorite movie again without having to worry about brushing their hair or wearing pants. Will anyone return to the movies after 31 days? Sure, but the market is so saturated and is going to be even more saturated in 2021 that you must be wondering if anyone is going to see any movies again.

Warner Bros. and HBO Max 2021’s first hybrid release is The small things, and it’s coming out later this month. We’ll have to see how things develop over the year. The report appears to say that Warner Bros. still says it will be a one year thing they will only do because of COVID-19, but who knows. If they can find a way to get their money back and appease their talents, this could be the new normal no matter what. Christopher nolan has to say.