Quote:
Originally Posted by DJ's left nut
They're asking for ten times the profits of their original agreement; they were getting 5% and now they want 50%. That's not nothing.
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I could be wrong on this, but I don't think those two percentages are apples-to-apples comparisons. The 5% is described as "first dollar gross," which I would take to mean it's a pure 5% of revenue (and expenses don't matter). The other arrangement Disney was proposing was "50/50 co-financing," which I would interpret as both of them have an equal stake in both the expenses and revenues (so Disney gets 50% of the profits rather than 5% of the gross revenue).
I'm sure that the 50/50 still is massively better for Disney than the 5%, but I don't THINK your assessment that it would be "ten times the profits" is accurate.
EDIT: To further disclaim this, I'm only about 75% sure I'm understanding this correctly, but using figures from
Far From Home, the film looks like it made about $1.1 billion worldwide, so Disney's share would be about $55 million. If you remove 3x production budget from that (which I've heard is a rough rule of thumb for total budget including marketing and distribution), that would mean Disney would have gotten like $310 million. So yeah, Disney's proposal is still massively different than the status quo. However, the 5% version says that "If the film tanks, Disney still gets paid," while the 50/50 version says "If the film tanks, Disney takes a hit just like Sony." So it's not COMPLETELY in Disney's favor do move to the latter arrangement.