"We certainly understand our customers and know what their viewing habits are and buying habits are. The studios have done a considerable amount of research and we believe there is a lot of value in getting this premium service early," Mercer told the web site.
Comcast and Vudu, the Walmart-owned VOD service, may also offer the $30 per viewing service this month in select markets.
Note: The DIRECTV 'Premium VOD' service will only be available to HD DVR owners.
Click here to read Swanni's take on $30 VOD.
Washington, D.C. (April 19, 2011) -- DIRECTV on Thursday will launch a VOD service that will charge $29.95 per viewing of movies made available 60 days after their theatrical release. The first film will be the Adam Sandler comedy, Just Go With It, which was released in theaters on February 11.
In a few weeks, DIRECTV plans to also offer the Ed Helms comedy, Cedar Rapids, the Owen Wilson comedy, Hall Pass, and the Matt Damon thriller, The Adjustment Bureau.
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.
DIRECTV spokesman Robert Mercer told The Wrap today that his company does not believe the high cost will scare away viewers.
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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.
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