Under deal studio gets minimum distribution fee of $115 million
Disney execs weren’t the only ones gleefully watching “Avengers” grosses on Sunday. Paramount has a big stake in the action, too.
Par would seem to have lost out on a huge payday since Paramount and Marvel parted ways on distribution and Disney came onboard. But in fact, Par will receive a minimum of $115 million in distribution fees for “Avengers” and “Iron Man 3” or the combination of an 8% and 9% cut of those pics, respectively, whichever is more.
Disney bought Marvel in 2009 for $4 billion; this year, the Mouse took over marketing and distribution duties of Marvel pics from Par, which previously released “Captain America: The First Avenger,” “Thor” and both “Iron Man” pics. “Avengers” marks the first film to be released solely through Disney.
The success of “Avengers” suggests Par will see more than the minimum guarantee.
Under the agreement with Disney, Par collects fees on all distribution platforms — not just theatrical, but homevideo, VOD and so on — for “Avengers” and “Iron Man 3” in all markets worldwide.
And Par gets to pocket all that coin without having to pay for a pricey marketing campaign or expend the manpower on distribution.
Another big winner is Epix, the cable joint venture of Paramount, MGM and Lionsgate: Pay TV rights to “Avengers” stayed with Epix despite Disney’s output deal with Starz.