Previous: Paramount Makes Money Off ‘Avengers’ Too
A year ago I was first to toldja about Paramount‘s big payday from The Avengers and Iron Man 3 – the two movies left on its 6-pic distribution deal with Marvel. Now I can tell you how much Disney moolah it pocketed. According to calculations I’ve received from insiders, Paramount receives 9% of Disney’s take on what is expected to be $1.2 billion worldwide gross theatrical receipts plus projected ancillary (like homevideo, VOD, television) for Iron Man 3. So that works out to be about $90 million to the Melrose Avenue studio. Paramount also pockets 8% of Disney’s take on the $1.5 billion worldwide gross theatrical receipts plus ancillary for The Avengers. So that works out to be about $100 million. In other words, the total dollars equal $190M. “It’s very nice,” a Paramount exec deadpanned. Oh, and did I mention that, when I first wrote about this deal, Disney was spitting mad at me?
To remind you, The Avengers was the first Marvel Studios film marketed and distributed by The Walt Disney Studios which took over those duties from Paramount in 2012 after Bob Iger bought the comics entertainment company for $4 billion in 2009. Then in 2010 Disney bought Paramount out of the final two films and paid a premium to put everything under its own roof as soon as possible. Paramount was to receive a minimum of $115M as an advance (paid in two installments – half when The Avengers was released, and the other half when Iron Man 3 screened on May 3, 2013.) Paramount received overages because it was entitled to the higher of either that $115M or the combination of its 8% on Avengers plus 9% on IM3. Oh, and Paramount also received onscreen credit. Unfortunately for Paramount, this cash cow deal finishes with these 2 films.