Friday, March 4, 2011

DirecTV poised to launch premium video-on-demand as theater executives voice outrage [Updated] | Company Town | Los Angeles Times

DirecTV is in advanced talks to be Hollywood's first partner for early video-on-demand, The Los Angeles Times reports. DirecTV would likely be the first distributor to launch so-called premium VOD, through which consumers would pay about $30 to rent a movie using Internet delivery or cable 60 days after it opened in theaters and at least a month before it would become available on DVD.

DirecTV is looking to introduce its product by the end of June 2011 with movies from 20th Century Fox, Sony Pictures and Warner Bros. Walt Disney Pictures is also in talks to join the initiative, while Paramount Pictures and Universal Pictures are not expected to participate initially.

The experiment obviously rankles movie theater operators, as the expedited release window will be seen as devaluing theatrical exhibition. In the existing release window, new releases are not available for DVD window until about 90 to 120 days after the end of theatrical run. The new proposed window might have some films being released to the new premium VOD window as early as a month to six weeks after the end of theatrical exhibition.

It's pretty obvious why the studios are willing to take a chance on disrupting their current release window structure. DVD sales have been a huge revenue contributor over the last decade. But that revenue contribution is eroding. Annual DVD revenues are down 30 percent from their peak in 2004, according to Adams Media Research. See http://www.nytimes.com/2010/09/26/business/26steal.html.

1 comment:

connan said...

DISH Network already has Hollywood and Blockbuster hit movies that we can provide you in HD in there platinum package. DISH Network is a far better company than DirecTV. As a DISH Network customer and employee I can tell you what channels are in the platinum package: Sony <Movie Channel, EPIX 1 & 2, IndiePlex, RetroPlex, Centric, Shorts, Fashion TV, Logo, Palladia, MavTV, HD Threater, HDNet Movies, Universal HD, Crime & Investigation HD, WFN HD, and MGM HD. So come and check this out www.dish.com.

Which Firm Will Use AI to Boost Revenue by an Order of Magnitude?

Ultimately, there is really only one way for huge AI infrastructure investments up by an order of magnitude over cloud computing investment ...