24/04/2014 - The Grand Budapest Hotel will no longer be screened in Medeia Filmes theatres

At a press conference in Lisbon yesterday, Paulo Branco, the producer and owner of Portuguese movie-theatre chain Medeia Filmes, announced his intention to make a formal complaint to the competition authority about the business practices of distributor Big Picture 2 Films.

At the heart of the controversy is The Grand Budapest Hotel [+see also:
film review
trailer
making of
film profile], which will henceforth be withdrawn from screening in the theatres that Branco runs. He maintains that the distributor is demanding that he pay in advance in order to screen the films in its catalogue. In the case of the latest film by American director Wes Anderson, Big Picture allegedly asked for €4,500 in advance, which Branco agreed to at first. The film’s commercial success then apparently prompted the distributor to request a second payment, which this time he refused to make.

Branco called the terms that Big Picture is imposing upon him “unacceptable, insufferable and completely outside of exhibition industry rules”. The firm has been the owner of three major US companies’ catalogues – 20th Century Fox, Columbia Pictures and Sony Pictures – ever since Columbia Tristar Warner shut up shop in Portugal at the end of March.

According to the producer, the relationship between distributors and exhibitors in Portugal is still based on an “unspoken rule” that states that payment must be made between 30 and 45 days after screening begins. This payment is a percentage of the takings: 60% in the first week, 55% in the second, 50% in the third, and so on and so forth.

Branco also militantly called into question the relationship between Big Picture and Zon Audiovisuais, given that the latter firm owns 20% of the distributor’s social capital and considering that Antunes João’s name is associated with both companies.

Zon was the national market leader for exhibition and distribution in 2013 (with takings of €39.9 million, according to the ICA’s data), whereas the third-biggest distributor last year was Big Pictures (with €8.45 million). For comparison, distributor Leopardo Filmes, which belongs to Branco, only took €490,000 in 2013.

In statements to the Lusa press agency, Antunes João, the manager of Big Picture, stated that the terms of payment established with exhibitors depend “on each customer’s specific credit terms”, and that this credit “obviously depends on a risk assessment of that customer”, he concluded, without talking specifically about Medeia Filmes or commenting on the criticism levelled at the firm by Branco.

(Translated from Spanish)