Movies May Hit DVD, Cable Simultaneously

[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride@wsj.com, Peter Grant and Merissa Marr ]
Cable companies and major studios are discussing strategies to release movies through video-on-demand cable services the same day they come out on DVD. Although the talks have been in progress for several months without an agreement, people familiar with the matter say some studios could do a trial run of the strategy early this year. Such a move would mark a major shift in the way Hollywood distributes movies -- and demonstrate how eager studios are to boost sales and cater to tech-savvy consumers. Historically, movie studios have staggered distribution points -- called "windows" in the industry -- to maximize revenue. A movie is generally released first to theaters, then several months later on DVD. Weeks or months after that, the movie is released through video-on-demand and on other platforms, with pay-per-view and regular television release coming last. Now, declining box-office figures and slower growth in DVD sales, along with the emergence of new technology, have prompted talk of collapsing or eliminating the traditional windows. The idea raises many complex questions, from pricing to piracy prevention. And studios need to weigh whether releasing movies earlier to video-on-demand would cut into DVD sales. But on balance, studios and cable operators hope that they will make more money if they give consumers quicker access to movies they want, in the form they want them.
http://online.wsj.com/article/SB113634253382637201.html?mod=todays_us_marketplace
(requires subscription)