Warner Bros. Sued Over Streaming ‘Matrix Resurrections’ on HBO Max

By Jon Lafayette
( Broadcasting & Cable )
published

Co-producer claims box office was sacrificed to attract subscribers

Keanu Reeves and Carrie-Anne Moss in 'The Matrix Resurrections'
Keanu Reeves and Carrie-Anne Moss in ‘The Matrix Resurrections.‘ (Image credit: Murray Close/© 2021 Warner Bros. Entertainment Inc.)

The co-producer of The Matrix Resurrections has sued AT&T’s Warner Bros. unit, alleging that the decision to stream the film on HBO Max breached their contract and hurt its box-office performance.

Village Roadshow Entertainment Group filed the suit in Los Angeles Superior Court Monday (February 7). WarnerMedia, the AT&T unit that oversees Warner Bros. and HBO Max, streamed all of Warner Bros. films in 2021 during the pandemic. Village Roadshow alleges that Warner Bros. moved up the release date from 2022 to December 2021.

“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, 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 said, according to The Wall Street Journal.

Also: HBO Max’s ‘Matrix Resurrections’ Watched in 2.8 Homes: Samba TV

“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," Warner Bros. said in a statement.

As media companies have pivoted to streaming they have shifted content to their direct-to-consumer businesses in order to add subscribers. The Walt Disney Co. faced a similar suit last year from Scarlett Johansson, the star of Black Widow. The film streamed on Disney Plus simultaneously with its release in theaters and the actress sued, claiming her payments based on Black Widow’s box-office performance were reduced, while Disney Plus benefited. The suit was settled in September.

According to the WSJ, Warner Bros. made new deals with many of the people involved in the films that were streamed in 2021, but no deal was reached with Village Roadshow.

Village Roadshow has a long-running relationship with Warner Bros. and claims the studio is also looking to cut it out of future films and TV shows based on work they have done together in the past. Past co-productions include Joker and American Sniper, as well as the Matrix films. ■

Jon Lafayette
Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.