Disney buys rights to release 'Avengers,' 'Iron Man 3' from Paramount

Disney wants to dominate the Marvel universe as soon as possible.

Resolving a long-standing question since Walt Disney Co. bought Marvel Entertainment last year for $4 billion, the Burbank studio has signed a deal to take over marketing and distribution of "The Avengers" and "Iron Man 3" from Paramount Pictures.

Disney will pay Paramount a minimum guarantee of $115 million for the rights against a percentage of revenue that the Viacom Inc.-owned studio would have received for releasing the pictures under an existing distribution deal.

Though Paramount will still receive the 8% of "Avengers" revenue that it had been guaranteed, the studio will get 9% of revenue on "Iron Man 3" as part of the new arrangement with Disney, a person familiar with the matter said. Disney plans to release "Avengers" in May 2012 and "Iron Man 3" the following May.

Not only will Paramount receive more money without doing any of the marketing and distribution work, but the $115-million minimum payment provides downside protection in case the films flop.

“For them to coordinate distribution and marketing and us to still get the economic benefit while focusing exclusively on our own tentpoles is a win for both sides," said Paramount Vice Chairman Rob Moore.

Paramount earned close to $60 million in distribution fees for each of the first two "Iron Man" movies.

For Disney, the deal enables the studio to exploit "The Avengers" and "Iron Man 3" across all of its entertainment businesses including movies, television, consumer products and theme parks. Capitalizing on the Marvel properties in such a way was the primary reason Disney cited for its acquisition of the comic company.

"In completing this agreement, Disney will leverage these two highly anticipated films across the multiple global platforms of the Walt Disney Co.," studio Chairman Rich Ross said in a statement.

Paramount will release Marvel's two 2011 films "Thor" and "Captain America" as planned, in May and July, respectively, since the studio has already begun marketing efforts for both.

Under the agreement, "The Avengers" will go through Paramount's pay cable deal with Epix, the network it co-owns with Lions Gate and MGM, rather than Disney's deal with Starz.

-- Ben Fritz

Photo: A scene from "Iron Man 2." Credit: Marvel Entertainment

Comments

[Ahksamillion]

Ok i get that disney wants to take over the world but im sooo not into seeing iron man destroyed by disney. this will definitely make the previous two movies bigger in comparison. Im not too sure if disney can handle the hype. im not too sure that disney can have this production live up to its previous productions... wow bad move...

[troy!]

That really sucks. Disney likely knows nothing about how to make a superhero movie

[Vegas]

WERE GONNA DIE BY THEN!!!

[Neo Po]

Hey let us expect more action and new technology in Iron Man 3 ........i like the movie most especially if acted by Junior(Actor in the previous ones!

[HayHay]

i hate Disney there everywhere they even ruined prince of persia and now are going to ruin my favorite movie iron man, i love iron man but now disneyy is going to make it all good and stuff when it should be bad and tough!

[mike]

Why did Disney have to ruin Marvel?

[druew barrymore]

i hate that.

[Anand Pareek]

that sucks, why are they doing that ?

[Iron man]

FIRST!

[calvinrose]

As A 55 Year Old Male Thor Was My All Time Favorite Comic Book Hero And To Hear That Thor Is Being Made Into A Movie Brings Back Fond Memories Of My Hero,As He Battled His Half Brother Loki And Crossed The Rainbow Bridge To See His Father Odin And The Other Members Of Asgard My Fondist Wish Would To See His Adventures Turned Into A SERIES As Being Disabled It Is Hard For Me To Go To The Movies,Again I SAY THANKS For Bringing Thor To The Big Screen And I Hope To Get To See It

[jc]

Sound interesting, and I actually think, that it is a good deal for both Disney and Paramount

[Some guy]

To all of you that said Disney is going to destroy the Iron Man 3 movie, you obviously did not read this in the article - "For Disney, the deal enables the studio to exploit "The Avengers" and "Iron Man 3" across all of its entertainment businesses including movies, television, consumer products and theme parks." For those that did read it and obviously didn't understand what it meant, basically, it means that Disney can advertise the movies on other Disney movies, commercials, Disney World, etc. They aren't going to do anything to the movie itself. And before anyone attacks me, I personally hated the fact that Disney bought Marvel but there's no use crying over it. I'm just stating facts.

[Joseph]

Guys lets settle down. It doesnt say disney is the production studio on these. Rather they will distribute it and make a bunch of money and shiz. I don't think this means disney will have say in the way the movie is made. not for this one anyway. future sequels maybe, but i think these 2 are safe.

[jorgito2001]

One step closer to Universal eventually forced to completely re-theme their Marvel Super Hero Island at Universal Studio's Islands of Adventure...talk about a conflict of interest!!!

Disney WILL NOT ruin these movies...they are only in charge of distribution as Marvel Studios is in control of Iron Man 3 & The Avengers...now...productions AFTER these 2 films are finished and in the can...remains to be seen. Disney execs haven't always made the right decisions for popular franchises (sequals to all their classic animated movies?!?!? Fail!).