Regal Theaters Drops Tomb Raider Sequel in Dispute

The country’s largest theater chain has refused to play Lara Croft Tomb Raider: The Cradle of Life in 47 of its theaters after a fall out with the distributor, Paramount Pictures, over a DaimlerChrysler Jeep promotion.

At dispute is an in-theater lobby standee promoting a contest dangling a Jeep Wrangler Rubicon SUV. Regal demanded payment for hosting the standees and Paramount refused to pay. As a result, Regal pulled the movie from its release schedule and is not using the standees in the hundreds of theaters that will still carry the film.

The sequel to 2001’s Lara Croft: Tomb Raider, starring Angelina Jolie, opens July 25. The first film brought in $131 million at the box office.

Knoxville, TN-based Regal operates approximately 530 theaters and is emphasizing its new policy of not allowing studios to pass-through third-party promotions in the chain’s lobbies and other advertising areas. Regal established a division Regal CineMedia to sell in-cinema advertising earlier this year.

Calls to Paramount, Jeep and Regal were not returned.

Other theater chains, such as Loews Cineplex Entertainment, operate under a different business structure, where by advertising, sponsorship and promotions fall under one department. New York City-based Loews, in conjunction with Paramount, is running a lobby promotion in its theaters featuring a Jeep giveaway. The promotion is part of a deal between Paramount and Loews in which Paramount is promoting Tomb Raider with a vehicle in Loews’ summer mobile tour. The tour vehicle features Jeep imagery from the film.

“Regal is really taking a position that ‘This is our business model and this is valuable advertising space and we will not allow studios to do pass-through promotions,'” Loews’ Senior VP-Promotions John McCauley said. “For us, something like our summer tour gives us a much bigger traffic draw than what we would have gotten if we were paid for the standee.”

Regal’s example will likely set a precedent for other chains.

“They really want to make it clear that you need to work with the theaters on promotions,” said Mitch Litvak, president of the L.A. Office, Los Angeles. “But at the end of the day, I think they (Paramount and Regal) will come to some sort of agreement.”