Walt Disney saw a few blockbuster flops in 2011, but early into 2012 it has already struck gold with the release of “The Avengers.” Record breaking sales globally and in the US market, the movie that released to months of heavy hype and a large fanbase is still filling up theaters.
“The Avengers” features five superheroes, ranging from Downey Jr’s Iron Man, the Hulk and Thor, but gives all of them enough air time and action to satisfy fans of all series, while also bringing together the arching plotline and focusing on their efforts together as a team. Disney and comic book fans are not the only ones looking to have a good time with this film’s release. Paramount Pictures will be hauling in millions of dollars, without having ever spent a cent to market or produce the film.
Paramount had already earned $57.5 million before the film hit American markets in April alone. On top of this large sum, it will earn 8% on the money made from its airings in theaters, its DVD sales and when it is watched on the internet. This is based on a 2005 distribution agreement that was made between Marvel and Paramount, giving them a distribution fee for the distribution of “The Avengers.” When Disney acquired Marvel in 2009 for $4 billion, it also acquired their liabilities, including this deal.
After the Disney deal went through, they amended the agreement to allow Disney the distribution rights to “The Avengers” and the upcoming “Iron Man 3.” Part of this deal also sent Paramount $115 million as an advance against fees they would have earned distributing the films. Disney though, does have all merchandising rights to the films and will be working towards turning the Avengers into a large franchise.
Another part of the deal sent “The Avengers” to Epix Online and premium TV which is owned by Paramount, Lions Gate and MGM Studios. Typically Disney movies go to Starz.
In 2013, at the release of Iron Man 3, Paramount will earn 9% of the generated money. Paramount is winning in this deal, having to spend near no money, if any money at all and earning millions. The Avengers is in theaters now.