Summit Demands Blockbuster Pay Up for ‘Twilight: Eclipse’ Discs3 Feb, 2011 By: Erik Gruenwedel
Summit Home Entertainment has filed a complaint seeking immediate payment of more than $9.5 million from bankrupt Blockbuster regarding disc shipments of the third installment of its popular vampire franchise, The Twilight Saga: Eclipse, among other titles.
Dallas-based Blockbuster, which filed for bankruptcy last September, had agreed to pay within 60 days of the title’s Dec. 4 release initial invoices totaling more than $1.6 million, according to the motion filed Feb. 3 in U.S. Bankruptcy Court in New York.
In a Jan. 28 phone call with Blockbuster management, Summit president Steve Nickerson was told Blockbuster could not pay the invoices because it did not have the funds to do so, according to the filing.
In the complaint, Summit claims it was assured in writing that Blockbuster’s court-ordered “Studio Accommodation Order” mandated all content providers be paid within two months of shipment.
“By failing to do so, [Blockbuster is] acting in direct violation of this Court’s Order,” read the complaint.
Specifically, Summit last November shipped Blockbuster 426,180 DVDs (excluding widescreen) of Eclipse for unit prices ranging from $6 to $20.20 each, in addition to 92,290 copies of the film on Blu-ray Disc (excluding widescreen) for unit prices from $6 to $23.99 each.
Summit, which claims Eclipse was the fourth-biggest home video release of 2010, contends Blockbuster has generated $8.3 million in rental revenue from the shipments.
The studio also has outstanding invoices for 1,710 copies of The Hurt Locker on Blu-ray for $23.99 each, and 1,620 copies of Robin Hood Unrated Blu-ray/DVD combo for $24.99 each.
Separately, Summit last month shipped Blockbuster 294,990 DVD copies (including special editions) of Red at prices of from $6 to $18 each, and 66,480 Blu-ray copies of Red at prices of from $6 to $23.99 each.
In the complaint, Summit said it is “a relatively small company, not one of the ‘Big Six’ media conglomerate ‘major’ movie studios” that it says can more easily accommodate delayed payments.
“It will be a significant hardship for Summit if this receivable is not paid,” read the complaint.