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Author Topic: VOD plan starts next week Justin Hamaker Film God Posts: 2253 From: Lakeport, CA USA Registered: Jan 2004 posted 10-01-2011 07:14 AM                        quote: ...because films rarely perform well in theaters 60 days after their initial release. When I started working in theatres in 1996, it was common for a movie in my small town to still be playing strong 4-5 weeks after the initial release, and the bigger movies could often go 8+ weeks with no problem. Now we are lucky to get 3 weeks out of most tent poles and typically only have 4-5 films a year that warrant 5 weeks. What's changed in that time? Primarily the window between theatrical release and home video. In 1996 it was the norm for movies to 6+ months between theatrical and VHS release. Now it averages about 3 months. I see a connection there. I also feel like there is far more emphasis placed on the opening day/weekend than there was 15 years ago. Maybe this can be partially attributed to the growth of the Internet and the need to have everything instantly. This year Harry Potter DH2 set a new single day/weekend mark of $91 million/$169 million respectively. And I have a feeling that Twilight Breaking Dawn will take this to a whole new level of absurdity on November 18. Given the rapid expansion of digital in the last 6 months, far more theatres will have the ability to show Breaking Dawn on multiple screens than ever before. For this reason, I have a feeling the opening day for Breaking Dawn might reach as high as $120 million with as much as $60-$70 million from midnight showings. Granted, Twilight is not the typical fan boy release. The absolute need to see the film the first possible moment is like nothing I have ever seen. I'm sure others are already starting to be pestered about when tickets will go on sale. While it won't hurt the fans to wait another month to buy their tickets, at least theatres can take advantage of that demand to help their cash flow situation in October.  |  IP: Logged Jonathan M. Crist Jedi Master Film Handler Posts: 531 From: Hershey, PA, USA Registered: Apr 2000 posted 10-05-2011 10:55 PM                     Just when you thought it was safe to go back in the water . . . See what happens now that Comcast owns Universal Tower Heist on VOD Three Weeks After Theatre Debut In an audacious move that could shake up the way Hollywood has done business for decades, Universal Pictures plans to make its upcoming Eddie Murphy action comedy film "Tower Heist" available through video-on-demand just three weeks after it debuts in theaters Nov. 4. But that convenience will come with a hefty asking price -- $59.99 -- that many cash-strapped consumers will balk at in the current economic slump. The proposed test, which will be offered in Atlanta and Portland, Ore., to approximately 500,000 digital cable subscribers of Universal’s corporate parent, Comcast Corp., marks the first time a major studio movie will be available to watch in-home while still playing in thousands of theaters. A person with knowledge of the "Tower Heist" release strategy who was not authorized to discuss it publicly confirmed the details for The Times. Spokeswomen for Universal and Comcast declined to comment. If enough people take advantage of Universal's offer without a significant drop in box-office receipts, other studios could adopt similar strategies in the future. Such a development would end the industry's long tradition of imposing a delay of several months between when a movie is shown in theaters and when it is accessible on television screens. Studios are looking to such experiments as a way to shift their age-old business models and generate additional revenue that can help compensate for plunging DVD sales that have been undermining movie economics over the last several years. Universal's move is likely to infuriate theater owners, some of whom were informed of the plan this week after more than a year of discussions on the topic. The cinema industry has reacted angrily to any attempt by studios to shrink the traditional "window" of 90 days between the time a movie debuts in theaters and when it's available for home view. Executives at the nation’s three largest theater chains -- AMC Entertainment, Regal Entertainment and Cinemark -- were outraged in the spring when four studios including Universal worked with satellite television distributor DirecTV on a test that made certain movies available for video-on-demand 60 days after they premiered in theaters for $29.99. Spokespeople for the three companies did not return calls or declined to comment. Many studio executives considered that test a bust because minimal promotion and relatively unpopular films such as "Sucker Punch" and "Paul" created a tepid consumer response and little data to evaluate. That probably won't be the case with "Tower Heist," which also stars Ben Stiller and Matthew Broderick and is one of the highest profile releases of the fall. With the picture still in theaters it will benefit from word-of-mouth if it's a hit, along with a theatrical marketing campaign still fresh in the public's mind that will be supplemented with advertising in the test cities to promote the VOD test. While the test probably won't be broadly popular, Universal is betting it will appeal to certain families and groups of friends who are eager to see "Tower Heist" but don't want to drive to a theater and pay for multiple tickets along with popcorn and drinks. That's precisely what theater operators fear, at a time when attendance is already down. They have argued that so-called "premium video-on-demand" will shift consumer behavior, encouraging people to wait to watch a movie at home rather than seeing it in theaters a few weeks earlier. Universal is assuring exhibitors that they will be compensated if "Tower Heist" ticket sales are lower than expected during the premium VOD test. Whether studio and exhibition executives can agree on what box office grosses would have been, however, remains to be seen. If cinema owners are angry enough about the strategy they could threaten to not play "Tower Heist" in the two test markets when they debut on VOD or, potentially, at all. Such a response, if shared by most exhibitors, could even force Universal to alter or cancel its plan. The studios seem committed to establishing a premium VOD business, however, and will probably launch similar offerings down the line with or without theaters' cooperation. Universal and Comcast selected Atlanta and Portland for the test because they were seeking midsize markets that have a certain number of digital cable subscribers and moviegoing patterns similar to other cities where premium VOD won't be available. The companies believe that will make it easier to compare the results. The "Tower Heist" plan would mark the most significant collaboration to date between Universal and its corporate parent since Comcast acquired media conglomerate NBCUniversal early this year. It represents a bold but risky step by Universal Pictures Chairman Adam Fogelson, NBCUniversal Chief Executive Steve Burke and Comcast Chief Executive Brian Roberts as they position their company on the leading edge of one of the most controversial issues in the entertainment business. To fend off potential complaints that it is favoring its owner, Universal will offer other cable and Internet companies the chance to release "Tower Heist" via video-on-demand at the same time and on the same terms as Comcast.  |  IP: Logged John T. Hendrickson, Jr Jedi Master Film Handler Posts: 889 From: Freehold, NJ, USA Registered: Apr 2001 posted 10-06-2011 09:07 PM                     The game of creep mouse is apparently back on. Seems like the studios are hell-bent to ultimately kill the exhibition end of the business. Another little test- short window/high price. What will the next test be?  |  IP: Logged Jonathan Goeldner Phenomenal Film Handler Posts: 1360 From: Washington, District of Columbia Registered: Jun 2008 posted 10-07-2011 10:23 PM                     in regard to 'Tower Heist' I'm hearing that Cinemark is considering boycotting/not booking it for their chain. from EW.com It has recently been announced that Universal Pictures plans to offer the Eddie Murphy comedy Tower Heist to digital cable subscribers in the Atlanta, Georgia and Portland, Oregon markets three weeks after the film opens in theatres. Over the past year Cinemark has continually voiced its concern to Universal and other studios regarding any early-to-the-home “premium video-on-demand” during the theatrical release period, which averages just over four months. Movies are designed to be exhibited in today’s state of the art digital theatres which enhances awareness of the film and maximizes downstream distribution. Many artists and business professionals in our industry have expressed similar concerns about early-to-the-home premium video-on-demand offerings as evidenced by the Open Letter From The Creative Community On Protecting The Movie-Going Experience released earlier this year. Cinemark recognizes and acknowledges the changing technological landscape and related challenges that Universal and the other studios are facing in the in-home window. Keeping in mind the best interests of the creative community, the studios, exhibition and the consumer, we have welcomed direct discussions between Cinemark and each of the major and independent studios, including Universal, regarding distribution concerns. Cinemark has urged Universal Pictures to reconsider its market test of this product. If Universal Pictures moves forward with its Tower Heist premium video-on-demand offering, as announced, Cinemark has determined, in its best business interests, that it will decline to exhibit this film in its theatres.  |  IP: Logged Louis Bornwasser Film God Posts: 4441 From: prospect ky usa Registered: Mar 2005 posted 10-08-2011 11:58 PM                        Well, we've always knew what kind of w----s the studios were, but now all we need to do is settle on a price. (Oblique reference to a Bernard Shaw quote.) Louis  |  IP: Logged Edward Havens Jedi Master Film Handler Posts: 614 From: Los Angeles, CA Registered: Mar 2008 posted 10-09-2011 01:38 AM                     Ironically, Tower Heist director Brett Ratner was one of the directors who signed an open letter to the studios earlier this year coming out against early VOD releases. Despite his production company being a part of the team who helped get the movie made, Ratner claims he was not consulted about this move.  |  IP: Logged Mark Lensenmayer Phenomenal Film Handler Posts: 1605 From: Upper Arlington, OH Registered: Sep 1999 posted 10-09-2011 10:16 AM                     The $30 experiment failed, so now they are trying $60? I don't know anyone who will pay that. The studios are scared to death of losing control of the release process. They don't want to have happen to movies what has happened to the music business with iTunes. I hope this experiment fails and fails quickly.  |  IP: Logged Mike Blakesley Film God Posts: 12767 From: Forsyth, Montana Registered: Jun 99 posted 10-09-2011 12:05 PM                        This is just a game. They know this is going to fail. The price is so high that hardly anybody will buy it, and the boxoffice will still be good because the movie looks like a hit. So the studio will just use this failed experiment as "proof" that PVOD doesn't hurt the boxoffice, and that will be their excuse to movie PVOD closer to the release date and/or lower the price. Once they reach a combination that DOES hurt the boxoffice, then the whole movie industry will be screwed. It's not just the exhibition industry; everyone will make far less money, especially the studios.  |  IP: Logged Brad Miller Administrator Posts: 17775 From: Plano, TX (36.2 miles NW of Rockwall) Registered: May 99 posted 10-09-2011 01:11 PM                     Yup.  |  IP: Logged Dennis Benjamin Phenomenal Film Handler Posts: 1445 From: Denton, MD Registered: Feb 2002 posted 10-10-2011 09:54 PM                        First they came for the carbon arcs, and I did not speak out— because I did not use carbon arcs; Then they came for the reel to reel projectors, and I did not speak out— because I did not use reel to reel projectors; Then they came for the union projectionists, and I did not speak out— because I was not a union projectionist; Then they came for the 35mm film, and I did not speak out— because we were already transitioning to digital projectors Then they came for me— and there was no one left to speak out for me & I was out of a job...  |  IP: Logged Mike Blakesley Film God Posts: 12767 From: Forsyth, Montana Registered: Jun 99 posted 10-10-2011 10:19 PM                        Well, at least you can have another career as a poet.  |  IP: Logged Bobby Henderson "Ask me about Trajan." Posts: 10973 From: Lawton, OK, USA Registered: Apr 2001 posted 10-11-2011 11:03 AM                     quote: Mike Blakesley Once they reach a combination that DOES hurt the boxoffice, then the whole movie industry will be screwed. It's not just the exhibition industry; everyone will make far less money, especially the studios. This is something the movie studios fail to realize. Without commercial movie theaters the major movie distributors such as Paramount, Columbia, etc. would be nothing more than TV networks without a TV channel. Basically there would be no reason for those major movie studios to even exist. Plenty of TV networks are already doing the TV job. Major movie studios would drop to the level of mere production company status since without theaters they would no longer have any need for any sort of booking and distribution apparatus. As production companies they would be horribly bloated and high priced -just asking for some bean counters to come in and fire a hell of a lot of people. Parent companies such as Viacom aren't going to keep around a superfluous distribution network at a studio like Paramount; Viacom already has the whole TV thing covered. They can put together their own TV movie deals with leaner, meaner (and cheaper) independent production companies. It's oddly funny in a way how these guys (both the suits in the global media parent companies as well as the people working in the actual studio) are working very hard to put the movie industry out of business. There's a number of camps who would actually be happy to see the American movie industry screw itself out of business. The more puritanical segments of American society would not be sorry to see the movie industry fail since they find so much of the industry's output morally offensive. Competing movie industries in Europe, Asia, India etc. might possibly go on and perhaps even prosper in the void left by a failed American movie industry. I can't help but wonder if some of those forces are at work to deliberately undermine the American movie industry. Putting commercial cinemas out of business would really do the trick. In terms of worldwide business and global projection of popular culture, America's influence on the rest of the world would be greatly diminished without its movie industry. IMHO, big chains like Regal, Cinemark, etc. need to start sticking it to Hollywood studios by refusing to play certain movies they release, particularly these VOD scheme releases. The majors in Hollywood are not the only ones producing movies. There are other content sources. It's obvious the movie theaters need to diversify and force Hollywood to earn those theater screen bookings. Right now major Hollywood studios feel they are entitled to those screens and can dictate any terms they like for playing content on them.  |  IP: Logged John Wilson Film God Posts: 5438 From: Sydney, Australia. Registered: Dec 1999 posted 10-11-2011 09:06 PM                     It's over kids. Everybody...out of the pool!  |  IP: Logged Frank Angel Film God Posts: 5305 From: Brooklyn NY USA Registered: Dec 1999 posted 10-12-2011 11:28 AM                        But it doesn't have to be. Exhibition has ALWAYS had much more power than they actually ever exhibited (no pun intended). One of the larger chains refusing to play a tentpole release will hurt a studio badly; get two of the three big chains to refuse and that would easily bring a studio to its knees. All of them doing it together and they could demand anything they wanted -- 6 month VOD...8 month to video. Why haven't they? Greed; it's always been the criminal here, no exhibitor willing to go all the way to the cliff and forego the $$$ of a potential BO hit. Without theatres, all a studio becomes is a producer of Made For TV Movies. And we know how well THEY do. When was the last time any network ran a MFTVM? Oh, OK, I take that back -- Hallmark Family Movie once a year with ratings at the bottom of the Nielsen chart. If that's what they want to become, so be it. And I totally agree with Bobby that there are segments of the population who have a disdain for Hollywood's output -- you know, those who consider themselves the "moral elite" and who want to keep the rest of us in line -- and with the ebb and flow of politics, they happen to be on the ascension at the moment and so it wouldn't be a big a surprise to find out they were instrumental in expediting Hollywood's decline.  |  IP: Logged Bill Gabel Film God Posts: 3873 From: Technicolor / Postworks NY, USA Registered: Jan 2002 posted 10-12-2011 02:39 PM                     The Trades report that Universal Studios abandoned it's controversial plan to release "Tower Heist" on VOD Test Wednesday afternoon.  |  IP: Logged

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