On-demand movies available 30 days after theaters

29th May, 2010 by adina
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There is a possibility in the near future that movies reach video on demand much faster. A proposal of Time Warner made at the Cable Show refers to movies reaching video on demand within thirty days in exchange of a premium price of $20 to $30. It seems that Disney, Paramount, Fox, Universal, Sony and Warner are intending to sign onboard. If the fast service is agreed, it would go live not later than this fall or the beginning of 2011. Fox and Paramount may not sign immediately to offer this service.

This approach will certainly generate controversies, as it potentially could jeopardize traditional business. It would reduce the incentive to visit instead of simply watching from home. Theater owners have objected to this policy and have even threatened to refuse movies released under such policies. The refusal might last for three-month periods.

Digital releases may also be hurt. Services like Netflix and iTunes are regularly given a delay between the movie’s release on DVD and the rental option, in order to steer customers back towards traditional video on demand and physical copies. The time when movies are made available online could be potentially shortened, but an artificial, longer buffer time between video on demand and purely digital could also be created.

Sony has made experiments in the past with pre-DVD releases by renting directly to televisions for a premium, but no studio has agreed to implement this model.


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