UP TO NO GOOD !

Disney and Sony Test Distribution Limit

Disney Studios and Sony Pictures have quietly begun testing a new movie distribution model - allowing pay-per-view (VOD) of the movie while it is still showing in movie theatres.  This 'testing' is taking place in South Korea and is the first time the option to view a movie at a cinema or in your home via cable, internet, or satellite TV provider is being offered.

The other four major studios are closely watching; however, Disney and Sony have been tight-lipped about the results.  It is widely thought that revenue from these premium VOD films were 30% higher than regular VOD sales, and cost $9 per view. According to Kim Young-gi of the Korean Film Counsel, "Movie-going is a cultural experience, VOD is like watching TV, I expect these markets to remain separate". Well, that is one opinion.

I have stated in CMG many times that eventually movies will be distributed day-and-date across all distribution platforms - so it should come as no surprise that the studios would covertly test market this model. It is imperative that cinemas prepare for this inevitable event and endeavor to present movies in the best possible way and offer varied and valued concession. Exhibitors should view their theatres as destinations and not just a places to see a movie.

Best
Jim Lavorato