EasyJet Boss May Sue Over Film Distribution Row

by Robin Pilgrim, LawAndTax-News.com, London

05 May 2003

EasyJet boss, Stelio Haji-Ioannou last week threatened to sue major film distributors such as Disney, Fox, Universal Paramount, Warners, and Columbia Tristar over restrictions that they are imposing on his new EasyCinema venture, set to launch on May 23.

Usually, film distributors make their money back from distribution fees based upon a percentage of the film's takings, or by a charge per head. However, the Greek entrepreneur wants to vary ticket prices according to demand and advance booking, and pay the distributors a flat fee for hiring films from them.

Although the film companies have granted EasyCinema permission to screen films that have already been seen, they will not allow it access to new blockbusters, which are essential to the venture's success.

Spokesman for the organisation, James Rothnie revealed that:

'Some of the distributors want to charge £2 per head. But we can't make a profit selling a seat for 20 pence if we have to pay the distributor £2.'

Mr Haji-Ioannou has vowed to resolve the dispute by the time his flagship Milton Keynes cinema opens for business, but this leaves him less than three weeks to reach a settlement with the distributors, or to challenge them in the High Court.

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