Paramount Sets Digital Release Dates for First Titles Under New Theatrical Revenue-Sharing Plan1 Dec, 2015 By: Erik Gruenwedel
Paramount Home Media Distribution has set digital release dates for Scouts Guide to the Zombie Apocalypse and Paranormal Activity: The Ghost Dimension — the studio’s first titles under a new distribution plan with theater operators.
Scouts Guide to the Zombie Apocalypse will debut on digital platforms for sale and rental beginning Dec. 8, followed by Paranormal Activity: The Ghost Dimension Dec. 15.
Under Paramount’s landmark rev-share agreement with AMC Theatres, Cineplex Entertainment, National Amusements, Alamo Drafthouse Cinema, Southern Theatres and Landmark Cinemas, movies are eligible to be released on home entertainment platforms 17 days after they dip below 300 domestic theaters.
The theaters will receive a percentage of the studio’s digital revenue for the period of digital availability through 90 days from the initial U.S. theatrical release, with each exhibitor’s share proportional to its theatrical gross market share.
Ghost Dimension was released theatrically Oct. 23 and generated $18.3 million at the domestic box office ($77.6 million globally) on a $10 million budget. Scouts Guide was released Oct. 30 and generated $3.7 million domestically ($14 million globally) on a $15 million budget.
The movies’ six-week theatrical window comes in well short of the industry average of three months and 20 days for a nationwide release.
“This flexible distribution model allows us to maximize the revenue potential of these films, satisfy consumer demand through legitimate digital access, while respecting and preserving an exclusive theatrical window,” Megan Colligan, president of worldwide distribution and marketing for Paramount Pictures, said in a statement.
Regal Cinemas, the nation’s largest theater operator, did not take part in Paramount’s trial program. But speaking on the company’s Oct. 27 fiscal call, CEO Amy Miles said the chain would be amenable to altered release windows provided they enhance the fiscal reward for all parties involved.
“We just didn’t see that in [the Paramount] test,” Miles said.