Premium VOD: New Distribution Model from DirecTV?

The nation’s No.1 and No. 2 satellite TV providers may be looking for new ways to provide movies to consumers. Dish Network (No. 2) recently purchased the assets of bankrupt Blockbuster for $320 million and may use the company’s online streaming service to take on video rental enterprises such as Netflix.

Meanwhile, DirecTV (No.1) is reportedly in talks with Hollywood studios regarding a new movie rental service that would provide $30 rentals just two months after films’ theatrical releases. Studios that are looking to combat slumping DVD sales believe that some consumers, especially families, may be willing to pay the higher fee for access to titles prior to their availability on DVD or from services such as Netflix.

Analysts explain that movie studios are open to new online streaming or pay-per-view models in order to recoup revenue from declining DVD purchases. We may also see $30 premium movie-on-demand offerings from cable firms such as Comcast and Time Warner Cable.

Related TVPredictions.com post: “DirecTV to Offer $30 VOD Next Week?” (4/15/11)

Related Engadget post: “DirecTV, Comcast, Vudu could start offering premium VOD $30 movie rentals in April” (3/31/11)

Digital Distribution: Is it Time to Redefine Cinema?

The New York Times offers an interesting perspective regarding how digital technologies have impacted the production, distribution, marketing and exhibition of contemporary movies. The article addresses a compelling focus in terms of how the communal aspect of viewing film is facing a dramatic cultural shift and how filmgoing has become less of a group experience. Have we reached a new milestone that may require us to redefine the term “cinema” — and, if so, what does this mean for the business of filmmaking?

The article cites the fact that theater attendance has declined in the U.S. from 90 million a week in 1948 to approximately 23 million today. Of course, the 1948 audience did not have Blu-ray, on-demand, cable movie channels, streaming services and an array of new technologies that enable today’s “24-hour movie.”

Technological innovation has led to cultural evolution regarding the traditional cinema experience. For many consumers, experiencing a movie is no longer about the anticipation of a release, the social environment created by sitting in a darkened theater with a date or a friend (and a group of strangers), or the “communal laughter, tears, gasps and heckling that become part of our memories.” For many (perhaps most), the experience is now more about clicking a button — and what has become a more personalized, immediate dynamic based on consumption-on-demand that technologies enable.

If the 24-hour movie continues to impact the demands and expectations of the movie-viewing public, will this require us to rethink how we produce, exhibit and market our content?