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A group of Hollywood studios has come to an agreement with DirecTV to launch a new premium video-on-demand service in late April. The move has apparently blindsided theater owners, who have lashed out against what they perceive as studio myopia.

Warner, Fox, Universal and Sony have joined with DirecTV to launch the new premium VOD service, with Comcast and VUDU also joining the party shortly. Titles from the studios will be available for on-demand viewing 60 days after their theatrical release for $29.99.

The National Association of Theater Owners (NATO) has spoken out against the move, calling it a “misguided adventure”.

According to NATO president John Fithian:

“Theater operators were not consulted or informed of the substance, details or timing of this announcement . . . In the end, the entire motion picture community will have a say in how the industry moves forward. These studios have made their decision in what they no doubt perceive to be their best interests. Theater owners will do the same.”

We’ve asked it before: will consumers really be willing to drop $30 on a movie two months after it has come out in theaters? Will enough people bite on the premium VOD concept to justify theater owners’ fears?

(via The Hollywood Reporter)

20 Responses to “Studios Announce Premium VOD Schedule, Anger Theater Owners”

  1. Visitor [Join Now]
    Miker2 [visitor]

    We all know that drugs are pervasive in Hollywood. Here’s the proof!

  2. Member [Join Now]
    steve-t

    the studios is out of there mind. i will not pay 30 dollars for a movie.

  3. Member [Join Now]
    moviecrazy

    You would have to be an absolute idiot to pay $30 for an on demand video!

  4. Visitor [Join Now]
    Rich [visitor]

    hmmm $30 for a movie 2 months after it comes out. I will just wait 2 more months and buy/rent it on blu ray

  5. Member [Join Now]
    s142424

    Terrible idea. And during NATO’s convention was just brilliant. The studios just don’t care who they demolish in their path, do they?

  6. Visitor [Join Now]
    Arnold [visitor]

    I assume there are a few people crazy and rich enough for this, but it’s hard to imagine more than a handful of people would use this. While the people in the movie industry have not been as shortsighted as the people in the music industry in terms of recognizing the changes the digital age would bring to their industry, it almost seems as if they’re trying to get to that point.

  7. Member [Join Now]
    tawnybits

    Is the $29.99 for one movie at a time or is a monthly payment?

  8. Visitor [Join Now]
    Jack [visitor]

    Good idea – bad timing. I’d spring for $30 – but ONLY if it were available on VOD same day as initial theatrical release.

    Otherwise, it’s idiotic.

    I don’t think theater owners have too much to worry about – most people will not do this – they’re either going to see the movie within a couple weeks of release or wait till DVD release.

  9. Member [Join Now]
    Hellstorm [hellstorm]

    While $29.99 isn’t a bargain for me and my girlfriend, I’m guessing it probably works out pretty well for couples with 3 or 4 kids.

    • Visitor [Join Now]
      Richard [visitor]

      If you’re a couple with 3-4 kids, you’re prolly not renting a movie for $30. Unless you have that much disposable income, you’d prolly wait for the bluray or DVD if you’re willing to drop $30 for a movie.

      • Visitor [Join Now]
        Bob [visitor]

        I believe they meant a 5-6 person family going to the movies. $9 a ticket, popcorn, candy, soda, etc. quickly turns into a $70+ affair for a single movie. At that point, $30 seems like a bargain, not to mention the convenience side of not having to load up the minivan and such.

  10. Visitor [Join Now]
    Elizabeth [visitor]

    I agree with Hellstorm. For a group of people, it could be a bargain. The theaters like to blame DVDs and VOD for the decline in their business, but I think a lot of people feel like I do. I’m not going to pay so much money to rent a seat in a theater for a couple hours, when I can wait a little while and rent the film for $1. If a film comes out that I really want to see big, I wait until it hits the $3 theater.

  11. Member [Join Now]
    spiralone

    <>
    We’ve asked it before: will consumers really be willing to drop $30 on a movie two months after it has come out in theaters? Will enough people bite on the premium VOD concept to justify theater owners’ fears?
    <>

    Hellz to the NO.

  12. Member [Join Now]
  13. Member [Join Now]
    Hellstorm [hellstorm]

    Looks like AMC is going to demand a bigger cut of the box office on films with a short VOD window – http://www.hollywoodreporter.com/news/amc-theatres-will-demand-new-176561