Time Warner To Test Premium VOD

• Los Angeles Times, Sunday, September 26, 2010 11:33 PM

Time Warner will begin experimenting early next year with a way to deliver movies to the home within a month or two of its debut in theaters, accelerating the trend of shortening the wait time between theatrical release and when consumers can first watch a film in their living rooms.

CFO John Martin said the company plans to begin testing what he called "premium video on demand," charging people $20 or $30 for the ability to watch a film before it's available on DVD or through bargain rental services, such as Netflix or Redbox. His remarks came Thursday at an investor conference in New York hosted by Goldman Sachs. The studio would have flexibility in how soon it offers films through premium VOD, so a major film such as "Inception," which is still No. 8 in the box office, despite being in theaters for nine weeks, wouldn't be offered in two months.

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