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Hollywood Challenges Netflix, Offers VOD Rentals

  • NBC Bay, Friday, April 1, 2011 12 PM

The top studios have agreed to rent "premium VOD" movies for $30 a pop. What does that have to do with the Web? Everything and nothing, it appears.  On the news, NBC Bay Area writes: "Now Hollywood is trying to circumvent the Internet but at the same time offer its own video rental service."

As GigaOm explains, "The introduction of Home Premiere comes as Hollywood faces sharp declines in box office revenues and theater attendance" -- for which the Web is partially responsible. "By introducing a new VOD rental window 60 days after films have their theatrical release, Hollywood studios are betting they can capture viewers in their homes."

All participating in premium initiative, Warner Bros., Universal and 20th Century Fox "have already succeeded in fending off companies like Netflix and Redbox, forcing them to wait 28 days after a film bows on DVD to offer those titles for rent through their online services," reports Variety. "Those same studios wouldn't mind lengthening that window even longer and have considered pursuing such talks.

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"The fact that Hollywood can try it illustrates why the movie business is faring much better against the digital disruption that has blown apart the music and newspaper businesses," MediaMemo explains. "Hollywood has conditioned moviegoers to the notion of 'windows,' which gives it the ability to charge different prices at different times in a product's life."

Adds MediaMemo: "Even if you have no idea what a window is, you know you pay a certain amount to watch a movie in a theater, a different price to buy it on DVD, a different price to rent it via Apple's iTunes, or a certain amount a month to get it via Netflix, etc. ... That flexibility is now the envy of other media businesses that are just now trying to get there."

Still "It remains to be seen if the new service will be able to compete with the growing number of online services," Softpedia writes. "Netflix may be the poster child, but Amazon and others are making good progress." Naturally, the effort is drawing plenty of criticism and vitriol. "Hopefully [the premium initiative will] shrivel up and die before it contaminates any other VOD offerings," writes Gizmodo. "I'd pay $30 to watch the funeral."

Read the whole story at NBC Bay »

2 comments about "Hollywood Challenges Netflix, Offers VOD Rentals".
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  1. Steve Peek from University Games, April 1, 2011 at 2:31 p.m.

    Thirty bucks! That's about the cost for 4 tickets at matinee prices here in the bay area. Are these guys thinking two couples are going to have movie night every other night and get a great deal for $7.50 each. Their rationale may be that premier movies in a hotel cost more than $10 now. Well, if you are a bored business man with an expense account you can watch them, but I won't pay that to go to a theater, let alone watch it in my home for that amount.

    The movie industry's greatest value and strength was distribution. Thirty years ago whole families would gather around on Easter to watch The Wizard of Oz because that was the only time during the year you could see it. Now I can download it to my iPhone anytime I want it. So what happens, I don't watch it because I can.

    Movies today are too accessible for Hollywood to be successful controlling distribution for higher than market values.

    Good luck, Hollywood.

  2. Andre Szykier from maps capital management, April 2, 2011 at 2:45 a.m.

    $30? That's getting close to a quick blowj**b in south of Market.

    Actually, none of this matters because we will follow the China Piracy model. As soon as a digital release is available of a film, it is ripped, shredded, distributed and stored on vitual P2P networks. From there, it is used as a publishing source to create copies, physical DVD or Ip'd around the planet.

    You can't stop this and it will just add to the cost of the average consumer who has to cover the losses to investors who buy into creating films and games.

    Humans are wonderful, and not willing to pay $30 without getting a blowj**b as a bonus... hollywood understands this. After all, they blow millions through their noses.

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