Disney's requirements for the new 'Star Wars' movie have angered some movie theatres

Star Wars Tim Whitby GettyTim Whitby/Getty‘Star Wars’ fans waiting in line.
  • Disney is requiring movie theatres that show “The Last Jedi” hand over 65% of ticket sale revenue, and play it in their largest auditoriums for at least four weeks.
  • Some small independent theatres are deciding not to show it.

When you are the king of the mountain, you can declare some unusual terms — and that’s exactly what Disney is doing when it comes to releasing “Star Wars: The Last Jedi,” some theatre owners said.

Even though Disney releases, including its “Star Wars” movies, have been a godsend to the movie theatre business, which has seen a decrease in ticket sales over the last few years, some theatre owners believe the requirements the studio is forcing on them to play “The Last Jedi” have gone too far.

According to The Wall Street Journal, movie theatres can show “The Last Jedi” only if they agree that Disney gets 65% of ticket sale revenue, which is the largest cut a studio has ever asked from theatres. They also have to show the movie in their largest auditoriums for at least four weeks.

Ignoring these terms would lead to Disney charging the theatre an additional 5% (so that means Disney would take 70% of sales).

For major multiplexes, these requirements aren’t deal-breakers. But for small independent theatres, this could cripple their business. So some independently-owned theatres have decided not to play “The Last Jedi,” according to The Wall Street Journal.

Most theatres send 55%-60% of ticket sales back to studios, depending on if the movie is a major blockbuster or not.

Business Insider reached out to Disney for comment but did not get an immediate response.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.