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Paramount ends Marvel relationship

Posted on August 9, 2011 By m8trix No Comments on Paramount ends Marvel relationship
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Paramount is to end their Marvel relationship in 2012. Why? You ask. Well lets look back on some of the older stories. Now this story really broke in 2009 when Disney took over Marvel comics. Second Disney payed Paramount $115 Million for distribution rights for the Avengers and Iron Man 3. Paramount still kept the distribution rights for Captain America and Thor movies but in this deal looks like any films made after that will be of Disney’s doing.

In October of 2010 there was a press release that explains the deal and states the following:

(Press Release)

BURBANK, Calif. – October 18, 2010 – The Walt Disney Studios, Paramount Pictures and Marvel Studios announced they have reached an agreement under which Paramount will transfer its worldwide marketing and distribution rights to Disney for Marvel Studios’ The Avengers and Iron Man 3. Paramount will remain the worldwide distributor of the upcoming films, Thor and Captain America, as well as the previously released Iron Man and Iron Man 2.

Under terms of the new deal, Disney will pay Paramount $115 million for the transfer of the distribution rights to Iron Man 3 and The Avengers to be paid on the theatrical release dates. These monies will serve as a minimum guarantee against the distribution fees.

“In completing this agreement, Disney will now assume worldwide marketing and distribution of The Avengers and Iron Man 3 and leverage these two highly-anticipated films across the multiple global platforms of The Walt Disney Company,” said Rich Ross, Chairman of The Walt Disney Studios. “We appreciate the tremendous momentum that Paramount established with these iconic Marvel characters and look forward to propelling the brand even further in the coming years.”

“Five years ago, when Paramount and Marvel made our initial deal, both our businesses were in very different places,” said Brad Grey, Chairman & CEO of Paramount Pictures. “We are grateful for the partnership we have had with the terrific Marvel team over these years and proud of the work we have done together. Today, this new agreement is the right deal for Paramount, for Marvel and for Disney. We look forward to working together on Thor and Captain America, and we wish Disney and Marvel the utmost success, in what we know will be a very productive and wide-ranging partnership.”

“Paramount has been a wonderful partner in helping Marvel Studios bring our characters to the big screen,” said Alan Fine, Office of the President, Marvel Worldwide, Inc. “This agreement makes sense now that Marvel is part of The Walt Disney Company.”

Paramount will release Marvel Entertainment’s Thor and Captain America worldwide beginning on May 6 and July 22 of 2011, respectively. The Avengers will be licensed to Epix under Paramount’s existing pay television arrangement.

This was not really a surprise after all because again Mickey and company now own the rights to Marvel and they want to capitalize on their rights. Paramount on the other hand only made 8% on distributing Iron Man 2 and Disney earned 92% of the films revenue which was $622 million worldwide. I say Paramount had a good reason to deal. But Paramount will be well compensated and they will even get 9% of Iron Man 3 without doing any work with it. As far as other studios go according to Deadline Disney is trying to buy up from Fox , Sony and other studios film rights such as Spider Man and X-Men. But those studios can hold on to those characters as long as they keep paying and make the film with in the contracted time frames.
I was wondering if Disney was going to go after all the rights like the one that Marvel had with Universal theme park in Florida which is in direct competition with Disney World. I asked around and got a very rounding NO. Or highly unlikely. I found out that contracts can be very lengthy in time with so many conditions that even if they were to expire it gives the right to renew under most of the same conditions. Being ignorant in big business contracts I will except that as a good explanation and if anyone else has more knowledge be free to say something.

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Tags: avengers disney iron man 3 marvel paramount

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