DirecTV poised to launch premium video-on-demand as theater executives voice outrage

DirecTV is in advanced talks to be Hollywood's first partner for early video-on-demand, a plan that is putting it in the cross hairs of the nation's top theater chains.

People familiar with the matter said the satellite TV company would likely be the first distributor to launch so-called premium VOD, through which consumers would pay about $30 to rent a movie via the Internet or cable 60 days after it opened in theaters and at least a month before it would become available on DVD. The plan represents a significant step in Hollywood's strategy to make movies available in the home earlier and in new ways to generate fresh revenue as DVD sales continue to fall and domestic box office has been stagnant. It has previously taken a minimum of three months for films to shift from theaters into the living room. DirecTV is looking to introduce its product by the end of June with movies from 20th Century Fox, Sony Pictures and Warner Bros. Walt Disney Pictures is also in talks to join the initiative, the people said, while Paramount Pictures and Universal Pictures are not expected to participate initially.