Comcast tries to ruffle feathers
Comcast wants to improve its video on demand offering with a premium service streaming movies to your home six weeks (42 days) after theatrical release. The price is undisclosed, but would likely be north of $30 per offering.
The idea isn't totally unprecedented. Fox, Sony, Universal and Warner Bros. are currently testing a premium streaming service with DirecTV where films become available 60 days after theatrical release. Variety quotes insiders who acknowledge the truth behind Comcast's plans, but also indicate studios aren't willing to budge on the 60 day mark.
Additional concerns have been raised regarding the levels of privacy protection Comcast can offer. DirecTV individually watermarks each individual stream, and it's unclear what Comcast's solution would be.
Get Opinionated
Pat wrote an interesting article discussing Home Entertainment vs. Theatrical Distribution last week. As was discussed in the article and further in the comments, any attempt to shorten the release gap could significantly change the existing business model.
Cognizant of that fact, Jeff Bewkes who is head of Time Warner, said studios "have to have the interest of theater owners in mind."
James Cameron chimed in saying: "You can argue about VOD windows all day long, but what you can't deny is that there is an overwhelming outcry from the theater owners that they feel threatened by this." And they should. Typically, theaters get a smaller portion of gate receipts during the first week or two of a films run, getting progressively more of a cut as you move further away from release. Shortening the window could front-load more films if the fans come out early, but those on the fence wait to watch at home. With less consumers later in a films run, and shorter runs in general, the move could cut into a theater's profits.
Studios are clearly testing a shortened window and want to see if consumers are willing to pay a premium to watch the film in the comfort of their home before it hits the streets on Blu-Ray. Only time will tell exactly what effect this has, and what exactly theaters can do to retain a leg up.
I'm Ron Burgundy. You stay classy, WoKJ.
