What is Premium Video on Demand?
It's a coming technology that would allow people to stream movies to their TVs only 60 days after they are released in theaters, for only $30. It seems like a lot for a movie, which can be rented on iTunes for $5, but you must consider the following: If you were to see this movie in theaters, the tickets for a family could easily rise over $30, and with food... we're not even going to go there. So, in reality, $30 is a deal for how quickly you would get to see the movie.
Why don't theaters like it?
When VHS tapes first came out, many people thought that theaters were going to die out. People today find that idea stupid, but that is basically what is happening now. Theaters are running scared of this revolutionary technology. If people can get a movie only 60 days after it is released in theaters, why would they pay to go to the theater? Some theaters are moving into action...
What are theaters going to do about it?
AMC, who owns the theater in my town, has announced they will be downplaying movies that are available on p-VOD, meaning they won't advertise it as much, and won't offer as many showings. You can see their official press release by clicking the "Read More" link below.
What's our opinion?
Our opinion? Well, we love technology, so we obviously love this. We also love theaters, so we should hate this right? Wrong. We believe there is a very simple way for theaters and p-VOD to co-exist peacefully. A lot of people won't have the technology to stream p-VOD, at least at first. Even now, many people will just have cable, not streaming boxes like the Roku or Boxee. Some of you probably don't know what those even are. For a while, there wont be a huge audience of people using p-VOD. Even after that, a lot of people will still go to the theaters for the experience. I'm guessing most people don't have 400 inch TVs in their house or a huge surround sound speakers like theaters do, so going to the movies will still be an experience, just like watching a DVD is considered different than going to the movies. I also think that theaters could get into the p-VOD game and offer their own systems of streaming movies, which means they could get in on the cha-ching.
In conclusion? It's hard to tell exactly how people will react and theaters will be affected until the technology comes to fruition. For now, sit back and enjoy your popcorn and $5 Coke.
AMC Theatres®: Company Statement Regarding Premium Video-On-Demand
We at AMC feel movie theatres are a critically important business to many parties: the 200+ million guests we host year after year who choose to view films on the large screen; the communities of which our theatres are an integral part; the artists who create the movies we show; and ultimately the entertainment industry for which our theatres generate the highest quality source of revenue.
We believe the theatrical experience has a bright future, and we are aggressively investing to prepare for it. We are in the midst of a multi-year, multi-million dollar rollout of digital projection and 3D, IMAX and our own proprietary ETX format. We are also introducing a new guest rewards program, better-for-you items, enhanced food and beverage offerings, dine-in theatre options and alternative, engaging programming for our guests to enjoy in our comfortable, state-of-the-art auditoriums. All activities we are currently engaged in have common goals - to increase attendance at our theatres and maintain the health of our industry.
The p-VoD world as currently defined threatens that health. As such, we have notified studios of our expectations regarding economic arrangements on movies that go p-VoD. It is not wise to discuss details in the press, and Company policy precludes it, but as these windows shrink and threaten our industry's future, it is only logical to expect AMC to adapt its economic model.
The future is bright, even as it promises to be different, and we look forward to the success that lies ahead for all parties.
About AMC Entertainment Inc.
AMC Entertainment Inc. delivers distinctive and affordable movie-going experiences in 361 theatres with 5,203 screens across the United States and Canada. The company operates 24 of the 50 highest grossing theatres in the country, including the top three. AMC has propelled industry innovation and continues today by delivering premium sight and sound, enhanced food and beverage and diverse content. www.AMCTheatres.com.
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