Warner Bros. is asking for a whopping 63 percent of Tenet's box office from theaters. After being delayed multiple times due to the coronavirus pandemic, Christopher Nolan's latest is finally poised for its debut. Tenet is scheduled to open internationally on August 26 and in select U.S. cities on September 3. While it won't be the first new movie to play in theaters amidst the health crisis, Tenet is undoubtedly the most high-profile release since March.
Theater owners have been looking forward to Tenet for a long time, counting on Nolan's clout to be a boost for a business hit exceptionally hard during the pandemic. Especially with Disney opting to release Mulan on Disney+, Tenet is an even more important event for exhibitors looking to rebound. And while theaters will certainly be grateful for Tenet's arrival, they're going to have to share a substantial amount of ticket sales with WB.
According to IndieWire, WB mentioned in an email to theater owners they want "63 percent for all weeks of engagement" during Tenet's run. That figure is significant because it is much higher than usual. Typically, the theater/studio split is closer to 50/50 by the end of a movie's run, with the studio taking a larger percentage in the first few weekends. Here, WB is asking for more all the way through.
From WB's perspective, this is understandable. Tenet's production budget is $200 million, and the film needs to earn a considerable amount just to break even. As theaters reopen, there will be a number of health protocols in place, including capped attendance. Many auditoriums will limit capacity to 30 percent or less, which will obviously impact the amount of money a movie grosses. WB is attempting to make up for that lost money by recouping more of Tenet's ticket sales, and theater owners unfortunately have no choice but to agree to these terms. Exhibitors are in a desperate position after the lockdowns and don't have any leverage to negotiate a fairer deal for theaters. They'll be banking on concession sales and other revenue sources to make up the difference.
Still, it'll be interesting to see how much this helps WB in the long run. It remains to be seen how many people will feel safe going back to the theater, as the pandemic remains a very serious issue. Given the current circumstances, Tenet faces an uphill climb to profitability, and 63 percent of all ticket sales may not be enough to get it to that point. Theaters in major markets like New York and Los Angeles are closed indefinitely, which makes things even more difficult for Tenet. Its performance may determine how other blockbuster movies are distributed in 2020; WB said it's possible their other upcoming theatrical releases will be delayed again. If Tenet comes up short by "new normal" standards, theaters could be in trouble again.
Source: IndieWire
