What could possibly bring the cable companies and the Hollywood studios together? Aren’t these the same two warring camps that have been playing chicken over retransmission fees? Well, consider these two words: Netflix and Redbox.
The fact is that DVD sales continue to drop as consumers choose other ways to get their movies at home, and [...]
OnDemand is a poorer quality product, for more money. Of course, that's why both the studios and cable cos like it.
The only thing OnDemand has going for it is convenience. Kind of like the mini-bar at the hotel (in more ways than one). Only problem is that RedBox and Netflix are pretty darn convenient already.
You're correct about the 28 days, at least for some of the new agreements negotiated by Netflix and Redbox. You and I differ on its significance. I rarely watch movies in theaters, and am only vaguely aware of release dates. When I want to watch a movie, I see what's available and pick one. I certainly can understand that a 28-day waiting period is an obstacle for some folks, but I believe that there is also a sizeable portion of the market that doesn't really care.
I didn't realize it was 28 days, but I'm with Alfred on this one. I rarely try to rent a movie when it first comes out on dvd/blu-ray. But I also understand there are some that want it immediately.
But only to a certain extent. I rarely get to the theater myself. However, my wife is usually pretty up to date on the latest releases, so this will be significant to her. I've also talked to a number of people who are very aware of DVD release dates. This is a small sampling so maybe it won't have much impact. I saw recently though that Blockbuster had signed a deal (with Warner?) to have same day DVD release date availability in stores, online and streaming. I thought that was a pretty big deal. Made me wonder how many folks would switch for that reason alone.
Let's not forget that the studios that have already been doing this have also eliminated all "extras" from rental copies. No disc that has commentaries, Director's Cuts, etc, will be available if you rent their films. Plus, the long wait times for new releases fron Netflix, etc. (sometimes months!) will now be even longer.
Jack Valenti, while still leading the MPAA, said before Congress that the willingness to pay for a motion picture is greatest during the promotional phase of the theatrical release. That is seldom stretched out longer than two-to three weeks. Valenti went on to say that when the publicity quiets down the demand for the movie plummets until it is "sold" as a rental or Pay Per View where pennies replace high demand driven box office dollars. The industry has had its problems in accepting an optimal strategy for harvesting this greater demand using a closer to the theatrical release window. There is a non-consumptive option that could be engaged with several of the delivery systems, though online seems to be the finest approach in the longest view. It was less than 7 years ago when all but Bit-Torrent said there was not enough bandwidth to deliver movies online. That has now given way and today I can download from several sources full HDTV formatted movies. What will be next thing enabled by still-higher bandwidth? I will leave that to your imagination but do want to venture my own guess: it will mean the one price fits all business model will give way to tier pricing which will reflect the higher level of technical consumption that true BD grade content will require along with a window closer to the theatrical window.
