Let's adapt to changing dynamics - Hollywood's answer: $30 Premium VOD

written by: Gianluigi Cuccureddu

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Published on Tuesday, 28 September 2010 14:43

Bloomberg reports that "Sony Pictures, Warner Bros. and Walt Disney Co. are in talks with the largest cable TV systems to offer films for as much as $30 per showing soon after they run in theaters."

The "premium" service would consist of the following differentiator:

"Let consumers see movies on TV without waiting the typical three or four months for DVDs or cable companies’ $4 or so on-demand showings."

John Martin, Time Warner's CFO said the company will start testing the service later this year. The offering will be priced between a  $20 to $30 per viewing.

According to the CEO of In Demand, Bob Benya, the studios are talking with In Demand, a partnership of Cox Communications Inc., Comcast Corp. and Time Warner Cable Inc. Disney is discussing as well streaming films on Web- linked devices such as Microsoft Corp.’s Xbox console and Sony’s Corp.’s PlayStation 3, said by people with knowledge of the talks.

The title of this article might give away that I don't think this will be a viable proposition. First because "Sony Corp. tested the market with users of its Bravia TV by offering the Will Smith movie “Hancock” in 2008 and the animated film “Cloudy with a Chance of Meatballs” in 2009 for $24.95." For now, Sony Pictures hasn't announced plans for other movies through the TV sets. This could have several causes, but a possible obvious reason is the high price.

Secondly, is this their answer of adapting to the digital society? Illegal downloading happens already, also right after the movies have run in theaters.  What will a "Premium VOD" change to this attitude when prices will be charged between $20 - $30?

Will the movie industry follow in the music industry's footsteps?