LOS ANGELES — The company that co-financed the “Matrix” movies has sued Warner Bros. for breach of contract, accusing the Burbank studio of destroying the value of its key franchise by releasing the latest sequel on streaming service HBO Max and in theaters at the same time.
The lawsuit is the latest example of a flashpoint in Hollywood after studios put some of their biggest movies on streaming services as the lingering COVID-19 pandemic caused uncertainty at the box office and media giants pursued direct-to-consumer strategies.
Los Angeles-based Village Roadshow Entertainment Group, which has co-financed and co-produced Warner Bros. films since 1997, on Monday accused the studio of sacrificing box office and franchise value to boost subscriber numbers for its sister streamer HBO Max. Warner Bros. and HBO Max are both owned by WarnerMedia, a unit of AT&T.
