Warner Bros is being sued by co-financiers Village Roadshow over the hybrid release of the sci-fi sequel The Matrix Resurrections.
As with all of Warner’s 2021 titles, the fourth Matrix film was released on the big screen and the company’s streaming service, HBO Max, as a response to the pandemic. A complaint put forward by Village Roadshow claims that the decision destroyed any box office chances in December.
The Matrix Resurrections, which reunited stars Keanu Reeves and Carrie-Anne Moss, made just $37m in the US and has just crossed $153m worldwide. The budget is believed to be around $190m. The Matrix Reloaded, the highest-performing of the franchise, made more than $740m in 2003.
“WB’s strategy not only ensured that The Matrix Resurrections would be a bust at the box office, but it also inflicted serious harm to the entire Matrix franchise,” the suit claims. “There can be no doubt that the abysmal theatrical box office sales figures from The Matrix Resurrections dilute the value of this tent pole franchise as a film’s lack of profitability generally prevents studios from investing in additional sequels and derivative films in the near term.”
Reviews for The Matrix Resurrections were mixed on release, with the Guardian’s Peter Bradshaw calling it “a heavy-footed reboot which doesn’t offer a compelling reason for its existence”.
The film was originally scheduled to be released in April 2022 but was moved to the end of 2021, a decision that the complaint alleges was intended to “create a desperately needed wave of year-end HBO Max premium subscriptions”. Two weeks ago, Warners revealed that HBO Max had gained more than 5 million US subscribers in 2021, up 35% over the past 24 months.
Village Roadshow is claiming breach of contract and alleging that Warners is also “devising various schemes” to deprive them of rights to follow-ups to other co-owned films such as sequels to Charlie and the Chocolate Factory and Edge of Tomorrow. The company has invested more than $4.5bn in a partnership that has lasted for more than 20 years.
“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,” the studio said in response. “We have no doubt that this case will be resolved in our favor.”
The suit follows a fractious year in Hollywood as studios released tentpole films on streaming services at the same time as in cinemas as Covid continued to affect audience turnout. Last July, Scarlett Johansson hit Disney with a lawsuit after her standalone Marvel adventure Black Widow went to Disney+ on the same day as its theatrical release, a move she claimed affected box office sales. The studio settled with her in October.
Warner’s decision to put its 2021 slate on HBO Max at the same time caused ire among film-makers that have worked with them, including Christopher Nolan and Denis Villeneuve. The studio’s 2022 films will mostly be launched theatrical-only with some possible exceptions.
