"As a crucial part of a business
that last year grossed close to
$32 billion in worldwide
theatrical ticket sales, we in
the creative community feel that
now is the time for studios and
cable companies to acknowledge
that a release pattern for
premium video-on-demand that
invades the current theatrical
window could irrevocably harm
the financial model of our film
industry," the letter stated.
The 'Premium VOD' concept has
been floated for months as
studios explore ways to generate
new revenue to counter declining
sales of DVDs. But the idea is
controversial because of its
cost -- and because movie
theater owners say it could hurt
their attendance if people know
they can watch a movie at home
just 60 days after its
theatrical release. Normally,
studios wait at least three
months before offering
theatrical films to home video.
Washington, D.C. (April 20, 2011) -- Almost two dozen Hollywood producers and directors today blasted the studios' new home VOD service that will charge $29.95 per viewing of movies made available 60 days after their theatrical release.
DIRECTV is scheduled to launch the service tomorrow with the Adam Sandler comedy, Just Go With it, which was released in theaters on Feb. 11.
But the Los Angeles Times
reports that the National
Association of Theater Owners,
which opposes the VOD plan,
today released a letter signed
by such Hollywood heavyweights
as James Cameron and Peter
Jackson. The letter suggested
the "Premium VOD' service could
jeopardize the future of the
movie theater.
"If wiser heads do not prevail, the cannibalization of theatrical revenue in favor of a faulty premature home video window could lead to the loss of hundreds of millions of dollars in annual revenue," the letter stated.
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