The Hollywood Reporter says the Academy of Motion Picture Arts and Sciences may move the Oscars after the 2013 show. The Academy Awards have been held at the Kodak Theatre since 2002. The lease with the CIM Group, which owns the theater, has an out clause after ten years. The Academy will try to negotiate a better lease.
Some of this has to do with the financial picture of Kodak. Excerpt:
It was a different situation in July 2000 when Kodak acquired naming rights to the 3,401 seat theater in the then-new Hollywood & Highland complex on Hollywood Blvd. Kodak, then still a global leader in imaging, agreed to pay $75 million over 20 years to have its name on the theater. It has been making $4 million annual payments ever since.
But if Kodak does not, or cannot, continue as the name sponsor on the theater, the CIM Group will likely seek to sell the naming rights to another business. Having the Oscars would be a huge calling card in such a negotiation, as it guarantees global brand exposure. That is the leverage the Academy believes gives it muscle in re-negotiating its contract.
On Friday, a spokesperson for the CIM Group said Kodak is current on its payments.