Following years of negotiations that’ve gone nowhere, Hollywood’s major studios are ready to begin releasing their movies through the internet mere weeks after they open in theaters.
As Netflix continues to dominate the digital marketplace with original TV shows and movies, Hollywood has been finding it harder and harder to get people to come to the theater or buy a movie for home.
So it’s time to fight back.
Bloomberg reports all the Hollywood big wigs save for Disney are ready to move forward with a plan to fight sagging DVD and home rental sales. Apple and Comcast are among the digital distributors who the studios are in talks with to release new movies at a premium cost. The early release concept is referred to as “Premium Video On Demand,” or “PVOD,” within the industry.
Exhibitors like AMC Theaters have been resistant to this idea since it could severely affect theater foot traffic, and Bloomberg says the studios are pushing ahead without them in order to force some progress. To make them happy, studios have been willing to split revenue gained from PVOD sales with the exhibitors. Theaters are reportedly asking for that deal to run for 10 years, which the studios are balking at.
PVOD may be tested internationally before it rolls out in the United States.
Should this deal go through, PVOD movies might cost between $30 – $50 depending on how early you’re watching the film. Yeah, that’s pretty expensive — it’ll be best to invite a few friends over and have everyone Venmo you some cash. Or, you know, just go see it for around $10 in the theater.