Post by BenJF3 on Nov 5, 2010 0:53:49 GMT -5
Washington, D.C. (November 4, 2010) -- Time Warner says it's expects next spring to launch a Video on Demand service that offers films a short time after they are released in theaters.
The company, which made the disclosure in an investors call, said the films would cost as much as $30 per viewing and would be available in High-Definition. Time Warner CEO Jeff Bewkes said the company is nearing agreements with the studios to offer the movies on such a short window.
The idea of making current theatrical films available in the home for a premium price has been kicking around for nearly a decade. However, theater owners and their studio partners have balked, saying it would hurt theater business.
But now with more consumers watching films on Video on Demand, DVD and Blu-ray, and video streaming, the studios apparently believe that home video services can soon bring it as much money as the theaters.
A major obstacle, though: Will consumers pay up to $30 to watch a movie at home when they could pay $10-12 to watch it in their neighborhood theater.? Plus, many Americans like to wait until a new movie is released on video because it's less expensive; the desire to see the movie when it's first released is not as important as the need to be frugal, particularly in a down economy.
Bloomberg News reports that Time Warner may test the 'premium VOD' service sometime this year. If the test is successful, several cable operators could join Time Warner is offering the theatrical films for premium prices next spring.
www.tvpredictions.com/tw110410.htm
This isn't bad considering if I go with my wife and kids, the cost is well over $30.
The company, which made the disclosure in an investors call, said the films would cost as much as $30 per viewing and would be available in High-Definition. Time Warner CEO Jeff Bewkes said the company is nearing agreements with the studios to offer the movies on such a short window.
The idea of making current theatrical films available in the home for a premium price has been kicking around for nearly a decade. However, theater owners and their studio partners have balked, saying it would hurt theater business.
But now with more consumers watching films on Video on Demand, DVD and Blu-ray, and video streaming, the studios apparently believe that home video services can soon bring it as much money as the theaters.
A major obstacle, though: Will consumers pay up to $30 to watch a movie at home when they could pay $10-12 to watch it in their neighborhood theater.? Plus, many Americans like to wait until a new movie is released on video because it's less expensive; the desire to see the movie when it's first released is not as important as the need to be frugal, particularly in a down economy.
Bloomberg News reports that Time Warner may test the 'premium VOD' service sometime this year. If the test is successful, several cable operators could join Time Warner is offering the theatrical films for premium prices next spring.
www.tvpredictions.com/tw110410.htm
This isn't bad considering if I go with my wife and kids, the cost is well over $30.