[Accelerating Movie Theater attendance decline] Five Studios Now Pushing For Premium Video on Demand

[Hamartia Antidote]

http://www.darkhorizons.com/five-studios-now-pushing-for-premium-vod/

Disney now appears to be the sole exception as Variety reports at least five of the major studios are pushing forward with plans for a premium VOD service soon.

Warner Bros. Pictures and Universal Pictures have reportedly been the most aggressive in their efforts to offer titles in the home within weeks of their theatrical premieres, Paramount has already been pursuing the strategy the longest, and now both 20th Century Fox and Sony have begun early talks.

The plan that has gathered the most steam would offer films around seventeen days after their theatrical opening (essentially the Monday following a film’s third weekend of release) to rent for a 48 hour period for $50. Studios would be cut in on a large percentage of the digital revenues.

At present studios are looking to sign up two or three major exhibitors with AMC and Cineplex the most likely to come onboard, while Cinemark is pegged as the least likely to shake up traditional distribution patterns.

Exhibitors are concerned customers might skip the cinema entirely and so want assurances the plan could be renegotiated if evidence suggests it is cannibalizing their business. They also want to cement the current three month home video window for another decade and possibly far beyond that, and more transparency over how studios collect and disburse digital revenues.

On the flipside some major studio executives are pushing for the opposite, namely a simultaneous day and date release of movies like many of the smaller indie distributors currently do now. Others are flexible over the window – namely warming to the idea of when a film stops being widely shown and drops below a certain screen count – then it would be availble for premium VOD.

The hope was a deal would be reached before CinemaCon late March, but currently there’s no pact in sight due to various issues from the ramifications of what such a thing would have on right deals and streaming licensing pacts to potential anti-trust law problems if the studios co-ordinate with each other to try and find an industry-wide solution.

Interactive Home TV with Video On Demand

 

[LA se Karachi]

http://www.darkhorizons.com/five-studios-now-pushing-for-premium-vod/

Disney now appears to be the sole exception as Variety reports at least five of the major studios are pushing forward with plans for a premium VOD service soon.

Warner Bros. Pictures and Universal Pictures have reportedly been the most aggressive in their efforts to offer titles in the home within weeks of their theatrical premieres, Paramount has already been pursuing the strategy the longest, and now both 20th Century Fox and Sony have begun early talks.

The plan that has gathered the most steam would offer films around seventeen days after their theatrical opening (essentially the Monday following a film’s third weekend of release) to rent for a 48 hour period for $50. Studios would be cut in on a large percentage of the digital revenues.

At present studios are looking to sign up two or three major exhibitors with AMC and Cineplex the most likely to come onboard, while Cinemark is pegged as the least likely to shake up traditional distribution patterns.

Exhibitors are concerned customers might skip the cinema entirely and so want assurances the plan could be renegotiated if evidence suggests it is cannibalizing their business. They also want to cement the current three month home video window for another decade and possibly far beyond that, and more transparency over how studios collect and disburse digital revenues.

On the flipside some major studio executives are pushing for the opposite, namely a simultaneous day and date release of movies like many of the smaller indie distributors currently do now. Others are flexible over the window – namely warming to the idea of when a film stops being widely shown and drops below a certain screen count – then it would be availble for premium VOD.

The hope was a deal would be reached before CinemaCon late March, but currently there’s no pact in sight due to various issues from the ramifications of what such a thing would have on right deals and streaming licensing pacts to potential anti-trust law problems if the studios co-ordinate with each other to try and find an industry-wide solution.

Interactive Home TV with Video On Demand

Good, it's the future of the industry, I believe. Movie theaters will always be around, but it's nice to have immediate access to new releases from home. Especially if you have one of those new OLED TVs.

The key will be the streaming quality, and a large selection of movies to choose from.

 

[Hamartia Antidote]

Good, it's the future of the industry, I believe. Movie theaters will always be around, but it's nice to have immediate access to new releases from home. Especially if you have one of those new OLED TVs.

The key will be the streaming quality, and a large selection of movies to choose from.

As I have been stating in the past it is mind boggling that the US leads China in theater box office sales since pretty much everybody has a big screen TV at home and access to streaming movies. Why take the kids to the theater when I can just grab the remote and within a few seconds have it up and running.

 

[LA se Karachi]

As I have been stating in the past it is mind boggling that the US leads China in theater box office sales since pretty much everybody has a big screen TV at home and access to streaming movies. Why take the kids to the theater when I can just grab the remote and within a few seconds have it up and running.

Agreed.

However, this article is quoting a price of $50 for access over a 48 hour period, if I'm not mistaken. Most movie tickets don't cost more than $15. If true, it would only be worth it if three or more people are watching.

Or does it mean that more than one movie will be accessible to watch?

 

[oprih]

American movie industry is dying. RIP

 

[jhungary]

As I have been stating in the past it is mind boggling that the US leads China in theater box office sales since pretty much everybody has a big screen TV at home and access to streaming movies. Why take the kids to the theater when I can just grab the remote and within a few seconds have it up and running.

IN this day and age when every one have a 65-80 inch screen at home, a standard threater with a standard 120 inch screen does not affect that much, but the people still going to the cineplex or multiplex is usually going there with friends and have fun and hang out.

Much like pubs, when you can literally drink any kind of drink (mixer, cider, beer) at home, why people still goes to pub? Granted, movie threater would have less and less customer because while most of the movie goer would still want to see the big release, with friends, in a seat that can recline, but the true movie goer, the one that go to see a movie because of the movie, would normally choose to be alone at home, watching it on demand..

I guess that is the main different.

Agreed.

However, this article is quoting a price of $50 for access over a 48 hour period, if I'm not mistaken. Most movie tickets don't cost more than $15. If true, it would only be worth it if three or more people are watching.

Or does it mean that more than one movie will be accessible to watch?

I think $50 for 48 hours is like a package deal for more than 1 movie or unlimited access to the same movie.

 

[Hamartia Antidote]

Agreed.

However, this article is quoting a price of $50 for access over a 48 hour period, if I'm not mistaken. Most movie tickets don't cost more than $15. If true, it would only be worth it if three or more people are watching.

Or does it mean that more than one movie will be accessible to watch?

I suspect they are targeting large families with little kids (and home theater people) who simply wait for movies to be available on cable for <$15 instead of paying >$50 to go to the movies. Although for $50 it had better be a really good movie for me not to wait for $15. I have only brought my kids to one movie in the theater (Minions). The rest of the time I simply wait for it to be on cable. I can handle fidgety kids at home better.

 

[livingdead]

As I have been stating in the past it is mind boggling that the US leads China in theater box office sales since pretty much everybody has a big screen TV at home and access to streaming movies. Why take the kids to the theater when I can just grab the remote and within a few seconds have it up and running.

sales as in in number of tickets?

 

[Hamartia Antidote]

sales as in in number of tickets?

I was thinking about the monetary amount. However that is a good question.

 

[livingdead]

I was thinking about the monetary amount. However that is a good question.

if more people watch movies online, it will be much more difficult to keep theatres busy.. and further increase ticket price... I hope it does not change consumer behaviour, because TV cant replace the big screen experience.

 

[Hamartia Antidote]

if more people watch movies online, it will be much more difficult to keep theatres busy.. and further increase ticket price... I hope it does not change consumer behaviour, because TV cant replace the big screen experience.

Unfortunately it has already been shown that cable tv has caused the number of theater ticket sales to go flat (or if price is not taken into consideration probably a decline)

Theaters in the US have been in big trouble for a long time now and as you said will need to raise ticket prices to stay afloat. But it may end up like video arcades.

A quick release on Video On Demand is just another nail.

 

[Zibago]

The industry needs to keep in mind increased global laziness

 

[Hamartia Antidote]

The industry needs to keep in mind increased global laziness

Look what typical theaters have to offer now to get people to go

 

[Zibago]

Look what typical theaters have to offer now to get people to go

But still even to get to a cinema you have to like move and shit meh not worth it

 

[Hamartia Antidote]

But still even to get to a cinema you have to like move and shit meh not worth it

This is offered in a theater near me. Maybe the food will be better than the movie.
The desperate things they do to beg more people to go to the theater instead of watching movies at home is getting more silly by the year. Meanwhile China with all its growth STILL can't match the US in total sales..and movie theater ticket sales have been flat in the US since the 1990's.