Time Warner May Roll Out On-Demand New Releases by Summer

Sections: Distributed video, Streaming, Video

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Rumors have been flying over the past year that the movie studios are itching to bring movies home, pay-per-view style within 30 days of theatrical release. Well agoraphobes, anti-social people, and large families rejoice — the time may finally be nigh. According to Warner CEO Jeff Bewkes, a deal is close to being reached with distributors that should allow them to launch in the third quarter of next year. He goes on to say that Time-Warner will be the first out the gate with the service, and movies like Harry Potter 7.2 are a shoe-in for the big unveil. Movies are expected to cost $30-50 a pop, a price which will decrease the closer the film gets to home video release. Even with a good chunk of the price going into the pockets of the movie theater owners, that’s a lot of popcorn and candy sales down the tubes, which are about 90% of the revenue a movie theater takes in, especially during the first few weeks of a film’s release. (Typically the theater’s take is between zero and 10% week one, sliding past the 50% mark by week four. Now you know why popcorn is six bucks). With the time the average film stays at the multiplex, and the window between opening and video as low as 12 weeks these days, these extra revenues will either be a shot in the arm, or further harm the ability for standalone movie theaters to operate.

Via [Yahoo]


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