‘Iron Man 3′: Disney Strikes This Deal with Regal

| + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Regal Entertainment Group (NYSE:RGC) and AMC Holdings, the two largest cinema chains, have reached deals with Disney (NYSE:DIS) for the rights to show Iron Man 3, reports Bloomberg.

“We thank our partners at Disney for working with us to achieve economical terms so we can present our guests with one of the biggest blockbusters of 2013 and solidly kick off the summer movie season,” AMC said in a statement.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

Disney had struggled securing deals with the three largest cinema chains in the country, including Cinemark Holdings (NYSE:CNK), after demanding a higher percentage of ticket sales. Blockbusters such as Iron Man 3, Monsters University, and The Lone Ranger (all slated to come out this summer) are able to demand a higher percent of ticket sales than movies with less hype. On average studios can usually expect 52 percent of ticket revenue, according to Eric World, an analyst at B. Riley & Co. in San Francisco. Disney reportedly demanded as much as 65 percent of sales for Iron Man 3.

The Robert Downey, Jr. flick is estimated to gross $151 million domestically in its opening weekend, more than Iron Man 2 but well below last year’s top-grossing Marvel’s The Avengers

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business