Feb 24, 2022 06:00:00

Why did Warner Bros. and Village Roadshow, who had an unusual honeymoon relationship, split up?

Warner Bros. Pictures, an American-based film company, has had a close relationship with the American film company Village Roadshow Pictures for over 20 years. However, in 2022, Village Roadshow has sued Warner Bros. for the movie The Matrix Resurrections. The Los Angeles Times, an overseas newspaper, explains why the long-standing relationship, which is said to be unusual in the movie world, has collapsed.

'Matrix' legal slugfest exposes Hollywood's shifting priorities --Los Angeles Times
https://www.latimes.com/entertainment-arts/business/story/2022-02-21/warner-bros-matrix-legal-slugfest-exposes-hollywoods-shifting-realities

In February 2022, Village Roadshow sued the distributor Warner Bros. over the contractual issues of The Matrix Resurrections, which was released in 2021.

Warner is sued for delivering 'The Matrix Resurrections' --GIGAZINE

Originally scheduled to be released in 2022, Warner Bros. has adapted to the new coronavirus infection (COVID-19) epidemic and subscribed users to its own streaming service, HBO Max . The release was advanced on December 17, 2021 with the aim of creating. Village Roadshow claims that the advance release and distribution on HBO Max have reduced the box office revenues and other ancillary revenues that were supposed to be earned, and Warner Bros. refused to explain the revenues. ..

Warner Bros., meanwhile, claims the Village Roadshow logo as a credit, despite violating the contract that Village Roadshow refuses to raise more than $ 100 million. He also accused him of receiving more than 40 World Premiere tickets and appearing in the media as a producer.

So far, Village Roadshow and Warner Bros. have co-funded the film and have signed important contracts, such as receiving a portion of the box office revenue. But if Warner Bros. distributes movies on affiliated companies' streaming services, it's the streaming services that make the most of the profits. The Los Angeles Times pointed out that the fact that the two growing companies changed their management strategies was the cause of the conflict. In particular, he points out that Warner Bros.'s shift to a policy of enclosing the production rights of streaming, reboot works, and spin-off works has greatly affected the deterioration of the relationship between the two companies.

In addition, the Los Angeles Times pointed out that the change in the operating company and the change in the management team also contributed to the fact that the policies of both companies did not match well. Village Roadshow was owned by private equity Vine Alternative Investments in 2017, and filmmakers such as

Bruce Berman , a former Warner Bros. executive, left the company later. Warner Bros. was placed under the umbrella of AT & T in 2018 with the acquisition of its parent company, WarnerMedia, and is changing its strategy, including the launch of HBO Max mentioned above.

'Many of the key figures who belonged to the company when the relationship between the two companies was good have already gone,' the Los Angeles Times said. The trials of the two companies, which have been separated despite their long-standing relationship, are scheduled to begin in earnest on March 11, 2022. 'We hope that it will be resolved by arbitration or settlement, which is preferred in the entertainment industry,' said Zeb Raven, a lawyer in charge of the entertainment industry who is not involved in the proceedings.