Studios Need to Halve Theatrical Window According to Analyst 
Home Theater News Industry-Trade News
Written by Dick Ward   
Wednesday, 02 February 2011

As much as consumers love inexpensive rentals from Redbox and all-you-can-eat streaming from Netflix, the companies behind the movies we watch hate it.  With such low pricing, they worry that they won't make as much money as they used to, and they haven't managed to find a business model that would satisfy both their needs and the wants of the consumer base.

Richard Greenfield, an analyst with BTIG, says that the solution is to cut the theatrical window down to eight weeks instead of the current 16.  If studios open up their movies to electronic sales at that point, either through video-on-demand or through internet rental services like Vudu, Greenfield says that they could charge a premium and still generate a great deal of sales.

Greenfield acknowledges that theater owners may have a problem with this method, but says that consumers need to be the primary concern.  "Disregarding what consumers want in a period of rapid technological change/development is a recipe for disaster."

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