Disney announced in May, this year after revealing quarterly earnings that “Free Guy” and “Shang-Chi and the Legend of the Ten Rings” would have theater releases. Moreover, the premiere of the two films will revive Disney’s theatrical releases after shutting down due to the COVID-19 pandemic.
Disney’s CEO, Bob Chapek stated that this decision was brought about due to “recent signs of increased confidence in moviegoing.” However, during the earnings call, Bob verified to a Wall Street Analyst that Disney has no choice but to release the film “Free Guy” in theaters exclusively.
The Disney film “Free Guy” stars Ryan Reynolds playing the role of a background video game character. The movie is a long-established production agreement between media firms 20th Century FOX and Warner Media. Owing to the deal, HBO owns the first pay window for Fox’s theatrical releases.
The Fox Movie Output Agreement
For over 40 years, Fox has held a movie output agreement with HBO. This deal was years before Disney acquired 21st Century Fox. Disney+ as a result of this deal has no streaming rights. The partnership term of Disney and Fox remains till early 2022.
‘Free Guy’: Traditional Release Forecasted
Disney’s CEO Bob addressing this issue on Thursday’s earnings call remarked, “We acquired [“Free Guy”] under a different distribution assumption and set of agreements. We don’t have the degree of freedom to do a (Premier Access) release.”
Disney is legally prevented from releasing “Free Guy” on Premier Access. Especially when the film is screening in theaters at the same time.
Disney will profit from a traditional route through various revenue opportunities. However, it isn’t clear if “Free Guy” will have a traditional approach through DVD/Blu-ray, and rental mediums.
Disney’s Cinema Releases For 2021-22
A media representative for Disney commented, “The company has not confirmed anything beyond the theatrical date at this point for Free Guy.” Disney’s 20th Century Studio films have slated more cinema releases for 2021.
Movies like “Ron’s Gone Wrong,” period drama “The Last Duel,” and the musical “West Side Story” will all have cinema releases. Additionally, Disney films that release in early 2022 will have to agree with the Fox movie output contract.
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