Village Roadshow, a co-producer of the Keanu Reeves-starring sci-fi movie, blames the lackluster theatrical performance of the latest 'Matrix' movie on WB's decision to go with hybrid release.
- Feb 8, 2022
AceShowbiz - The lackluster box office performance of "The Matrix Resurrections" has resulted in a legal issue for Warner Bros. The studio is sued by Village Roadshow Entertainment Group, a co-producer of the movie, as it blames WB's hybrid release strategy for the disappointing theatrical revenue of the sci-fi movie.
The production entity and longtime supplier of tentpole movies filed the suit in Los Angeles Superior Court on Monday, February 7, alleging breach of contract. In the 50-page complaint, the company blasts "the deliberate and consistent coordinated efforts of WB to eviscerate the significant value of Village Roadshow's intellectual property."
Village Roadshow claims to be the victim of "rampant piracy" facilitated by the streaming release, adding that Warner Bros. could have foreseen the potential consequences that "come by distributing this marquee picture on a streaming platform on the same day as its theatrical release," and moved forward with plans anyway.
"WB's sole purpose in moving the release date of 'The Matrix Resurrections' forward was to create a desperately needed wave of year-end HBO Max premium subscriptions from what it knew would be a blockbuster film," it argues, "despite knowing full well that it would decimate the film's box office revenue and deprive Village Roadshow of any economic upside that WB and its affiliates would enjoy."
The suit goes on stating, "WB's strategy not only ensured that 'The Matrix Resurrections' would be a bust at the box office, but it also inflicted serious harm to the entire Matrix franchise." It alleges, "There can be no doubt that the abysmal theatrical box office sales figures from 'The Matrix Resurrections' dilute the value of this tent pole franchise as a film's lack of profitability generally prevents studios from investing in additional sequels and derivative films in the near term."
Warner Bros. has responded to the lawsuit. In a statement, the studio said, "This is a frivolous attempt by Village Roadshow to avoid their contractual commitment to participate in the arbitration that we commenced against them last week. We have no doubt that this case will be resolved in our favor."
"The Matrix Resurrections" was part of Warner Media's 2021 roster pushed for simultaneous releases in theaters and HBO Max amid the pandemic. It ended up raking up just $37.4 million in North America and $118.1 million internationally for a worldwide total of $155.5 million against a budget of $190 million.
Warner Media's aggressive tactics with streaming service HBO Max caused another key production partner, Legendary Entertainment, and many other stakeholders to express displease with the strategy. None of them, however, brought a legal claim as the company has spent around $200 million to compensate dozens of partners for foregone box office revenues.
