Why Studios Should Spark A Premium VOD War

Theater owners are rightfully nervous that ticket-buying audiences could dwindle if presented with the option of paying about $30—perhaps way too much, recent research suggested.

Threats of blocking theatrical distribution are either prelude to a clash or just public posturing for some kind of pact that will insulate theater owners should premium VOD take too big a bite out of their wallets. The prospect of war brings to mind a standoff that occurred one year ago between Disney and theater chains including Odeon over the studio’s plan to move up the DVD window on Alice In Wonderland. At some point soon, one studio or another is going to step up and make known what title(s) will be the canaries in this premium-VOD coalmine, and if White’s comments haven't already lit the fuse, that will. As badly as the studios want to meddle with the traditional windows that are under becoming more and more challenged to deliver revenues under pressure from digital platforms, they can't alienate the theater owners. The box office provides that first-window exposure crucial to driving momentum in every other stop on the distribution chain.