The decision by to give all 2021 Warner Bros. movies simultaneous releases in theaters and on HBO Max has drawn ire from across the industry. Now, it appears the move could also have severe financial consequences for WarnerMedia.
A new report, courtesy of MoffettNathanson, suggests that this release plan will cost Warner Bros. $1.2 billion, though other movie studios project that the losses will be even greater. This estimate is dependent on how theatrical moviegoing recovers during 2021 once a vaccine for COVID-19 becomes widespread among the general populace.
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"Most people think exhibition will be doing very well in the latter half of 2021," observed John Fithian, president of the National Association of Theatre Owners. "Maybe they won't be doing record numbers, but they will probably be back to profitable business operations."
This new release pattern will begin with Wonder Woman 1984 on Dec. 25. WarnerMedia films will be available for their first months on HBO Max while also screening in theaters. Following the first month, each film will only be available in domestic and international theaters. 2021 Warner Bros. titles going this route include Dune and The Suicide Squad.
This strategy has drawn increased criticism on numerous fronts, with some citing its potential adverse impact on major theater chains like AMC Theatres. Additionally, filmmakers including Zack Snyder, Denis Villeneuve and Christopher Nolan have also been vocal on their disagreements with the move.
Source: The Hollywood Reporter