With no Avatar-sized blockbuster on tap to draw viewers into theaters, the fourth quarter of 2010 is looking to be a rough one for Hollywood. BTIG analyst Richard Greenfield believes that studios may accelerate their rollout of premium video-on-demand to compensate for the downturn in box office receipts.
The box office period from December 17-26, traditionally one of the strongest of the year, was down more than 28% from the same period last year, and the Christmas weekend box office tally was off a whopping 45% from 2009.
Greenfield believes that these terrible numbers will make it difficult for studios to maintain their traditional four-month window between theatrical and home video release. Says Greenfield:
“We continue to expect multiple studios to begin trialing early-release, premium-priced VOD by late [first quarter],”
Warner CEO Jeff Bewkes believes that his studio will be able to increase its return on films with premium VOD without harming their box office grosses. Said Bewkes:
“We think we can come up with an incremental, serve-the-consumer kind of offering that does not undervalue theatrical content and the consumer view of what that value is,”
How has your movie attendance this holiday compared to that of last year, Insiders? Do you think that Hollywood will be able to boost its bottom line with swifter implementation of expensive premium VOD options?
(via Home Media Magazine)