Film-Tech Forum ARCHIVE: James Cameron Siding With Theater Owners Against Studios' Premium VOD Plan

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Posted by System Notices (Member # 2357) on 04-07-2011, 09:46 PM:

James Cameron Siding With Theater Owners Against Studios' Premium VOD Plan

Source: hollywoodreporter.com

quote:
Cinemark also takes a stand, refusing to carry trailers or put up signage for any movie until it's notified whether the title will be part of the premium VOD offering.

The standoff between Hollywood studios and theater owners over a new premium VOD service intensified Wednesday as prominent filmmakers -- including James Cameron -- prepared to side with exhibitors in a show of support for the theatrical experience.
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Theater Owners Launch Counteroffensive Against Studios' Premium VOD Plans

The country's largest theater circuits also are hitting back hard at Warner Bros., Fox, Universal and Sony, whose VOD deal with DirecTV is reportedly finalized.

On Wednesday, Cinemark Entertainment told the four studios it won't carry trailers, or put up signage, for any movie until the studio notifies it in writing whether the title will be part of the premium VOD offering down the road. Cinemark also could refuse to play a film.

"We are not here to market movies for DirecTV and VOD. We are demanding they tell us upfront what movies those are," Cinemark CEO Alan Stock told The Hollywood Reporter. "Our goal is to promote and advertise movies for their theatrical run."

Cinemark's stern warning came one day after Regal Entertainment told the four studios that it is slashing by half the number of all trailers it plays from them. Nor will it play a spot for any film that's slotted for premium VOD. The policy takes effect April 15.

Representatives from AMC Entertainment met with studios Wednesday to discuss the steps it plans on taking.

Regal, AMC and Cinemark are the country's three largest theater chains, respectively, representing nearly 16,000 of the 38,605 screens in the U.S.

DirecTV is expected to launch the new service -- dubbed Home Premiere -- this month, followed quickly by a similar service on Comcast and VUDU. Consumers will be able to see a movie 60 days after its theatrical release for $29.99.

Theater owners say the move threatens the theatrical window and sends the message that watching a movie at home is just as good as seeing it in a theater.

Last week, director Todd Phillips spoke out against the premium VOD service when attending CinemaCon, the annual convention of theater owners. He was there as part of the Warner Bros. contingent, promoting his The Hangover Part II.

Phillips told theater owners he makes his films for the big screen, not for the small screen. Otherwise, he would be have been a television director.

Cameron also attended CinemaCon to discuss the future of digital cinema and give a demonstration on frame rates. He repeatedly told exhibitors that the theatrical experience can't be repeated in the home, particularly when it comes to digital 3D and new technologies.

Insiders say Cameron, along with other industry leaders, will go public with his opposition to the premium VOD service in the coming days.

For their part, studios say they have to find a way to make up for collapse of the DVD market, once a major source of revenue. Also, they say movies don't play in theaters beyond four or five weeks anyway.

Now, movies debut on DVD 90 to 120 days after they bow in cinema houses.

In a statement, Regal CEO Amy Miles said a healthy theatrical window is important to the entire movie industry.

"Based on the recent announcement regarding Premium Video on Demand, we are amending our policies for support of films from studios participating in the new VOD model," Miles said. "It is simply not in Regal's best interest to utilize our resources to provide a marketing platform for the release of Premium Video on Demand movies."

Posted by Joe Redifer (Member # 3) on 04-07-2011, 10:43 PM:

60 days after a theatrical release isn't bad. What movie even lasts much longer than 2 or 3 weeks these days anyway? I was under the impression that this VOD stuff was day and date with the theatrical release. If it is truly 60 days, what are we all whining about? I could understand if a movie didn't open on 15,000 different screens simultaneously, but they do and that causes interest in any given movie to die very quickly as we were discussing in another thread.

Posted by Jake Spell (Member # 5294) on 04-07-2011, 11:16 PM:

I think the fear here is that most people will simply wait the 60 days and/or that this is just another stepping stone for the exhibitors to do day and date VOD releases.

Posted by Joe Redifer (Member # 3) on 04-07-2011, 11:20 PM:

60 days = 2 months which is an eternity in the cinema business. Didn't Batman come out on VHS while it was still playing in theaters? I don't think anyone went out of business due to that one.

Posted by Ian Parfrey (Member # 5122) on 04-07-2011, 11:35 PM:

Joe is spot on here.

There was a reason why the 'roadshow' movies of old always had long runs- limited releasing and the resultant building up of hype over time. If you limit the availability of a product, you automatically increase the 'want factor'. That just can't happen with day and date VOD releases.

Posted by Chase Pickett (Member # 5975) on 04-08-2011, 12:15 AM:

Regal, and Cinemark are probably just fighting for those few movies a year that do play past the 2 month mark. The drop (at my theater at least) is very considerable when the DVD releases for a movie we are still playing, and I'm sure they just don't want that to happen even earlier with VOD. But honestly, how many people do any of you know are willing to pay $30 for a movie on Demand at home? Even at 60 days past theatrical release.

Posted by Aaron Garman (Member # 1653) on 04-08-2011, 01:10 AM:

Who is running these studios? Seriously, do they really think someone is going to pay $30 to watch crap like Sucker Punch and the Lincoln Lawyer?

The studios are losing revenue because half the product they make is absolute shit.

AJG

Posted by Geoff Jones (Member # 3668) on 04-08-2011, 07:36 AM:

quote: Aaron Garman
half the product they make is absolute shit.

That's just silly.

You really think only half is absolute shit?

Posted by Scott Jentsch (Member # 1681) on 04-08-2011, 12:25 PM:

If one were to look at the total cost of the movie experience, $30 isn't out of line.

For the Milwaukee area, the going rate for an adult ticket for an evening show is $9-$10 (not UltraScreen, not 3D, not IMAX). That puts a "date night" movie at about $19 for a pair of tickets. We don't have downtown theaters, so there's no parking fees. Many people like to enjoy a popcorn and soda with their movie, so let's add $13 for a reasonably-sized (no tubs or gallon-containers) soda and popcorn for two people to share.

That puts the cost for the night at $32.

The cost of a couple of cans of soda and a bag of microwave popcorn comes in at less than the $2 difference.

Add on top of that the convenience of not leaving home, not having to get a sitter for the kids, choosing the start time (maybe?), and the known quantity that you won't have to deal with other people that can ruin the experience for you, and you have a decent competitive product for the consumer.

However, I think the real competition for this product comes from the product already available on PPV/VoD/Redbox/Netflix for regular price.

60 days ago, the new releases were The Roommate, Sanctum, The Other Woman, The Mechanic, The Rite, and From Prada to Nada. I didn't pay full price to see these movies in the theater, and I can't imagine paying the proposed $30 price to see them if they were available now. However, I would probably put Sanctum and The Mechanic on my Netflix list, and they would probably spark my interest if I were surfing the PPV channels looking for something to watch (but I've only purchased 2 PPV movies in 15 years).

The current PPV releases from DirecTV include Tron Legacy, Little Fockers, Black Swan, The Fighter, Tangled, The Tourist, and Rabbit Hole. New DVD/Blu-ray retail releases include Little Fockers, Tron Legacy, Black Swan, and Tangled.

Of course, once the blockbusters start rolling out, the playing field changes a little.

Posted by Bobby Henderson (Member # 840) on 04-08-2011, 01:15 PM:

Folks, the theatrical run consists of the movie playing in more than just first run theaters.

A lot of independently operated in theaters in small towns don't get the movie on opening day. They often have to wait a couple weeks or even a month or two to get it. Bargain/2nd run theaters have been feeling a tighter squeeze from narrowing home video release schedules.

The Vaska Theater is the oldest theater still in operation here in Lawton. It's a bargain theater, but the 60-day window might still put it out of business. The tickets are cheap, but a family can still end up spending $30 anyway by loading up at the snack counter. The Vaska's profit margin is pretty narrow. The theater can't afford to lose too much more of its audience. It has already taken a hit from shrinking DVD release windows. I think cheap rental prices as of late have worsened the matter. A 60-day premium VOD window might be the final nail in the coffin.

Not every movie release goes "wide" on opening day. Plenty of releases are "platformed" into staggered release dates, particularly during the Oscar campaign season. They open in a very limited number of screens in NY, LA and perhaps a few other giant-sized cities and then slowly grow the number of screens over a period of weeks. A 60-day VOD window would really screw a lot of theaters that had to wait a month or more to book an Oscar contender.

How does International release factor into this? Only in the last couple or so years (supposedly as an anti-piracy measure) have Hollywood studios chosen to release certain films simultaneously in many different countries. Usually an American movie will be released in North America, then open weeks later in Europe, later than that in Japan, etc. A 60-day VOD window would much to wreck that release model. If people in other countries weren't able to directly access the VOD release honestly they could end up getting to the content in other ways. Yes, I think these premium VOD shows will work as another source for piracy.

Posted by Mike Blakesley (Member # 26) on 04-08-2011, 01:17 PM:

quote: Joe Redifer
If it is truly 60 days, what are we all whining about?

From an article I read:

quote:
The problem with “Home Premiere” is not that there is a big audience waiting to go to the movie theater on Day 61 of a run and that they will have a choice between seeing it in a theater and seeing it at home. The problem is that a 60-day window starts to devalue the idea of going to see a movie in a theater on Day 1. The problem is that a 60-day window devalues second viewings of a movie in a theater.

and also:

quote:
I guess the good news is that this pricing in that slot is highly unlikely to be successful. The bad news is wrapped right in there, however, as there seems almost no chance that faced with a poor response to this offering, The Window Killers will just walk away from their idea. They will do what businesses do… experiment and try to find the right numbers in combination. That could mean $15 Home Premieres… that could mean 6 week Home Premieres… that could mean killing Home Premiere, but trying to force the DVD window up to 60 days… that could mean a $30 a month subscription that would give you all the Home Premieres each month, which is looking like 2 or 3, according to the program’s mouthy backers.

And the MPAA members tell the exhibitors, “Trust us,” as they negotiate deals for a 60-day cable/satellite window without consultation with the partners who have held an exclusive position for at least four months from opening day for decades. “We don’t know why these guys are so resistant!” Exhibitors start with, “You smiled in our faces while you were slowly sticking the knife in our backs.” It doesn’t matter whether the studios are right. (If they are right for anyone, it’s for themselves only… but even that is a dubious proposition.) They have shown a complete lack of respect for their longest held relationships.

And finally:

quote:

Selling the theatrical experience in 2011 is not a cakewalk. Yet, people still want it. You’re asking people who pay, on average, over $80 a month just to have the TV running in their homes to pay $8 – $15 per person for two hours of entertainment in a big room with great sound and projection with a hundred or a few hundred strangers. They are hoping it will be worth the money… unlike a sporting event where you have a stake in the teams or a concert where you know the songs going in or whatever other form of entertainment. And they know that if they wait a little while, they can see that film for the price of a subscription they may already have that costs less per month than the cost of a movie theater ticket.

But if the industry and the media keep telling them that they really don’t have to go to those movie theaters… that it’s all junk… that there is no difference between your TV and a theater… that you don’t really have to be very patient (on an adult scale) and you can get anything you want… well…
People can be trained.

And if the margins for theaters are nipped by 10% or 15% while the studios are improving their revenues by 10% or 15% (or not), theaters will close… and they will not be unclosed.

So ring that bell, studios… even though you know it can’t be unrung. I guess it’s not enough to have to figure out the many new platforms for Home Entertainment and maximizing those before screwing with the one that has worked reliably for decades in the modern era.

Posted by Aaron Garman (Member # 1653) on 04-08-2011, 01:23 PM:

quote: Geoff Jones
That's just silly.

You really think only half is absolute shit?

Good point!

AJG

Posted by Joe Redifer (Member # 3) on 04-08-2011, 01:50 PM:

Mike, the movies themselves devalue second viewings in the theater. If a movie is good, people will want to come back with their friends and all of that bullshit because it is "fun" and "happening". By the time 60 days rolls around, the movie has been forgotten and it would be embarrassing to be watching such an old movie. A feeling of shame would overpower most people for spending MORE than the cost of the far superior Blu-ray version which would be available only 30 or 60 days after VOD and can be watched an unlimited amount of times for no additional cost.

As far as discount theaters go, they often play movies even after they are out on home video and they seem to do fine. VOD is too expensive to compete with them.

I wait for the home release on pretty much ALL movies with very, very few exceptions. Movie theaters just are not a good experience at all any more. VOD won't kill theaters. Theaters will kill theaters.

Posted by Mike Blakesley (Member # 26) on 04-09-2011, 09:35 AM:

I guess you must live in an area with crappy theatres. Almost every time we go to the movies it's a good experience. But we avoid opening-weekend crowds which is probably a good part of it too.

But none of that matters. Like I said in a post in some other thread, many people don't care that much about quality. All they want, is to see the movie they want to see. They don't care if it's in their house, on their phone, or on a bedsheet hanging from a tree. If the movie they want is in a theatre, they will go there. If they can get it at home, EVEN IF they have the world's crappiest setup at home, they'll stay home. And if not enough of them choose to spend the $30 to do that, the studios will lower the price and/or move the date up until they do. That's the problem in a nut-shell for the theatre industry. It's not the quality of the theatres.

Posted by Joe Redifer (Member # 3) on 04-09-2011, 05:44 PM:

Of course I live in an area with crappy theaters, I've mentioned that many times before. But there's always hope that will change somehow. But keep in mind that 60 days is a long time and if a movie is new and popular, people will want to see it NOW. I certainly don't blame any theater or chain who wants to renegotiate on VOD titles, but it's not a death knell. Not yet, anyway.

Posted by Steve Guttag (Member # 268) on 04-09-2011, 08:37 PM:

In recent memory...King's Speach...far exceeded the 60-days...in fact, the CURRENT home release schedule killed the 2nd run market. In my mind, a movie should need to wait a year for its home release...if they want it, they will want it in a year without the decision of "do we see it in a theatre or wait for the home release?" You see it in the theatre...and THEN buy/rent it on the home release.

-Steve

Posted by Joe Redifer (Member # 3) on 04-09-2011, 08:57 PM:

That's unrealistic. Not gonna happen. Ever.

Plus, with movies like The King's Speech (proper spelling), people will go to the theater even when the movie is out on video. Happened to us with Hurt Locker, Social Network, Girl With the Dragon Tattoo and others. They still came out in droves even though they could rent it for $1 instead of paying our $9+ price (each). We made a ton of money. King's Speech isn't hurt by any home release.

Also, home release windows have been much smaller over the past decade or so than they were compared to the previous decade. Is the industry hurting as a result? Sure doesn't seem like it to me.

Posted by Brad Miller (Member # 2) on 04-10-2011, 02:15 AM:

quote: Steve Guttag
In my mind, a movie should need to wait a year for its home release...if they want it, they will want it in a year without the decision of "do we see it in a theatre or wait for the home release?"

That theory worked great back in the 80s and 90s when the studios didn't have a committee re-writing each script into predictable and lackluster poo, but nowadays nobody will want it in a year because the studios are grooming people to believe you aren't hip and cool if you don't GO SEE IT RIGHT NOW OPENING WEEKEND, THE NUMBER ONE MOVIE IN THE WORLD, OMG, YOU ARE A FAILURE IF YOU DO NOT COME SEE THIS NOW!

Also most movies are such crap these days, nobody ever wants to watch it a second time. The reason movies in recent decades like Titanic played for so long is because people kept going back and paying repeatedly to see it again and again because the movie was actually good.