Theater Owners Argue Against Studios’ Plans For Premium VOD
Movie studios are looking to start a new premium video on demand plan that will allow movie goers to stream films one to two months after their theatrical release. Movie studios’, aside from Paramount Pictures, are planning on charging consumers between $30 and $60 for this service.
John Fithian, the president of the National Associate of Theatre Owners, told the Los Angeles Times “We are reaching out to the creative community and the business community because we think some of the studios are moving down a path of a bad business model. They risk losing two dimes to save one nickel.”
Fithian, along with other theater owners have met with Wall Street analysts to plead their case that making the theatrical “window” of films (typically 60 to 90 days) will decrease revenue for the theaters. They state that consumers are less likely to see a movie in the theater if the title will be available for streaming just a month after they are released.
Industry analyst James Marsh countered the theater owners stating that the premium on demand feature would be insignificant to theaters’ bottom line. “The potential market for someone who is going to pay $30 or more 30 days after a movie is released is a very small market.”
I tend to agree with Marsh. While the idea of not dealing with opening night crowds and sticky floors in a movie theater is appealing, isn’t the theater experience one of the main reasons we, as movie goers see films? And we also see films strictly to see films on “the big screen”. What are your thoughts on this premium VOD?
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