Tuesday, September 16, 2014

PARAMOUNT CLEANING UP ON AVENGERS, TOO

May 7, 2012 by · Leave a Comment 

Disney is not the only studio set to earn substantial revenue from the success of The Avengers. According to trade reports, Paramount will collect 8 percent of the film’s earnings from theaters, home video, and the Internet stemming from a 2005 distribution deal between Marvel and Paramount that transferred to Disney when it acquired Marvel for $4 billion in 2009. The agreement also called for Disney to pay Paramount an advance of $57.5 million upon the release of the movie, which according to the reports, it did last month when it debuted overseas. The reports indicate that Paramount gets its fee without having to contribute anything to the costs of marketing and distributing the film. A similar deal is in place for the third Iron Man movie, scheduled for release in 2013 — but in that case Paramount will receive 9 percent of the film’s earnings.