AfterDawn: News

Studio behind 'Twilight' tells Blockbuster to pay up

Summit Distribution, the studio behind the blockbuster franchise 'Twilight,' is demanding that struggling rental chain Blockbuster pay up what it owes, or head into liquidation.

When Blockbuster filed for bankruptcy last year, it told Summit it would not pay Summit the $6.8 million it was owed for DVDs shipped out.



Summit is now demanding a judge force Blockbuster to pay up, or head into liquidation where it will raise the money needed.

Blockbuster went into Chapter 11 bankruptcy in September, giving the company a chance to reorganize debt without liquidating. If the company cannot recover, it will be forced into Chapter 7 where the full management team will be replaced and all of the rental company's assets will be sold off to pay debts.

Summit's latest, 'The Twilight Saga: Eclipse,' was the 4th most popular DVD in 2010.

Reads the court documents (via Yahoo):

To Summit's surprise and dismay, the debtors informed Summit that the debtors would not pay Summit with respect to products that were shipped post-petition (after the bankruptcy filing) because the debtors lacked the funds to do so.

Summit's president, Stephen Nickerson, says Blockbuster is expected to rake in $8.3 million from sales of Eclipse, and that the missing $6.8 million is causing a hardship on the finances of the small, independent studio.

Written by: Andre Yoskowitz @ 4 Feb 2011 16:40

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• 12 comments

• Altus5802

  So if I got caught illegally downloading one copy of Twilight I could owe thousands.
  
  Blockbuster can take the movies (millions) rent them out for profit, and then not pay back the company? They only have to pay for the disk if they do pay it back. Shouldn't each "stolen" copy cost them thousands as well, let's keep it even.

  4.2.2011 17:02 #1

• bigwillie450 (unverified)

  Originally posted by Altus5802: So if I got caught illegally downloading one copy of Twilight I could owe thousands.
  
  Blockbuster can take the movies (millions) rent them out for profit, and then not pay back the company? They only have to pay for the disk if they do pay it back. Shouldn't each "stolen" copy cost them thousands as well, let's keep it even. You have no idea how contracts and/or bankruptcy works do you?

  4.2.2011 18:32 #2

• hikaricor

  You have no idea how sarcasm works do you?

  4.2.2011 18:36 #3

• POGK

  BB has been sticking it to the consumer for years. I cannot help but smile at this news!

  4.2.2011 19:09 #4

• VENOM79

  bigwillie450, enough said edited by ddp

  4.2.2011 22:20 #5

• ZippyDSM

  Ah yes don't you just love the the media cartel....
  

  Until lobbying is a hanging offense I choose anarchy!
  Ah modern gaming its like modern film only the watering down of fiction and characters is replaced with shallow and watered down mechanics, gimmicks and shiny-er "people".
  http://zippydsmlee.wordpress.com/

  5.2.2011 09:40 #6

• ddp

  VENOM79, watch the name calling, post edited.
  

  5.2.2011 16:24 #7

• DXR88

  Greed VS Greed....Who will win.

  5.2.2011 16:54 #8

• Xian

  Summit is in a bad spot - they continued to ship DVDs to Blockbuster after they had already filed bankruptcy. If I had to deal with a company in bankruptcy I would have said no credit - pay now or you don't get what you are wanting to buy.
  
  I have known several people that lost their jobs when their company had to close through no real fault of their own, but because their customers went bankrupt and didn't pay their bills. It's been happening a lot more in these troubled economic times.

  5.2.2011 22:54 #9

• ZippyDSM

  Originally posted by DXR88: Greed VS Greed....Who will win. I dunno when physical goods are purchased and then rented out the maker should have no say in the process even for media...
  

  Until lobbying is a hanging offense I choose anarchy!
  Ah modern gaming its like modern film only the watering down of fiction and characters is replaced with shallow and watered down mechanics, gimmicks and shiny-er "people".
  http://zippydsmlee.wordpress.com/

  5.2.2011 23:16 #10

• Altus5802

  @Bigwillie, it was just a joke. lol. I really wish there was a specific sarcasm font for the net, and texting. That could be worth some cash!

  9.2.2011 22:29 #11

• duke8888

  I love their commercial they ran during the Superbowl, we are the first to have them no waiting 28 days. Yeah first to have and not pay for them die Blockbuster die I hate them. Now the landlord of their stores are going to kick them out as they filed a suit for them to pay their rent on their stores. Just throwing money down the drain with Blockbuster goodbye.

  22.2.2011 08:19 #12