Warner Bros. may have to pay upwards of $250 million to stream Godzilla vs. Kong on HBO Max. Legendary Studios came to that valuation when the film was shopped to streamers earlier this year. Netflix offered $200 million for the film, but Warner Bros. stepped in to nix that deal. They wanted the film for their own fledgling streaming service, HBO Max.
Since then, it was announced that WB's entire 2021 slate would hit HBO Max and theaters the same day, upending the industry. Legendary Studios, the studio behind Godzilla vs. Kong and WB's other 2021 blockbuster Dune, is unhappy with the move and even considering litigation to stop the plan. That litigation could potentially stop Dune from hitting HBO Max due to its release date later in the year. With Godzilla vs. Kong's release sooner, though, the studio is still aiming to put the film on HBO Max.
In order to do so, WB may have to shell out a hefty sum. The threat of litigation has not gone unnoticed and, according to Deadline, WB is considering paying out the full initial valuation of Godzilla vs. Kong. The studio would have to pay an estimated $250 million to retain the right to stream the film. It would only remain on HBO Max for a month, at no extra cost to subscribers.
The backlash against the Warner Bros. decision was swift - many spoke out against the studio for seemingly causing irreparable damage to the industry. Legendary, who helped finance both Dune and Godzilla vs. Kong, is seeking to safeguard their investments - including the franchise potential of Dune. On top of that, WarnerMedia has been heavily criticized for prioritizing their brand new streaming service over the wishes of the creators who trusted them with their films. A key issue in particular that's emerged is the deals WB made with actors and directors, in which the talent earn a portion of the box office grosses. WB paid Gal Gadot and Patty Jenkins $10 million bonuses for Wonder Woman 1984's HBO Max release, but have to negotiate with other stars such as Will Smith and Keanu Reeves.
Now, it looks like WarnerMedia may have to pay for their decision. Legendary financed a significant portion of Godzilla vs. Kong, with WB handling the distribution, and they, like many others, are looking to recoup their investment. $250 million is a hefty sum, more than the reported budget of the film, and with WB potentially losing over $1 billion in box office grosses, every penny counts. It's likely WB won't back down from their decision - they'll just have to fork over the money for Godzilla vs. Kong and hope for the best.
Source: Deadline
