Will this be the end of theaters?

Hollywood Studios is working on bringing us closer to new releases then we could ever imagine possible. They are diligently testing out the idea of distributing movies to cable and satellite operators (Time Warner Cable and DirecTV) as early as a month to two months after the movie release. What’s the catch? The premium price of course.

The terms on the table stand that the cable and satellite customers would have to pay around $24.99 for 60 days after the release while those who are anxious to see it at the earliest time (30 days) is looking at $50. Sources believe that at least one studio is debating about having a trial run this fall by airing a new film a few weeks after its theater release.  It’ll gauge audience reception to see if the idea is worth pushing forward.

The talk of hosting premium video on demand has been discussed on and off but with consumers’ needs to have it ‘now’ it is pushing these talks into advanced stages. So why not maximize profits by adjusting the timeline of theater debut to when it’s open to the public? Sounds like a smart marketing strategy to rope in additional millions for those involved.

Some TV companies are quite hesitant with this idea due to antitrust regulations; they are trying to avoid causing any strife with theater partners or anyone who will lose substantial revenue. When thinking about it, this premium VOD is discussing movie releases while it still is playing on the big screen. It could take a huge chunk out of theater profits as many individuals will be able to receive the at home experience without the theater’s gouging prices.

Many companies have legitimate concerns and are still baulking on the idea. Stepping on anyone’s toes would surely come to pass if not handled appropriately. The companies wait to see if any studio takes the first leap to begin testing these ideas before partnering up with this deal.

With this gigantic step looming in the future, the sale of DVDs will continue to increasingly plummet while premium VOD will be at the hands of audiences. Theaters will suffer from the long haul even if the time window is stretched. When it boils down to it between the cost of theater tickets and snacks you’re already looking at a large amount of money put in the company’s pocket. It will be intriguing to see who will leap forward in this new venture and what controversies will emerge when they start getting down to the nitty-gritty.

via TheMoviePool