The Future of Theatrical Windows
If you read the title of this article and think we’re going to talk about architecture, we’re sorry to disappoint:
Before Iger’s remarks, studio executives spoke of releasing DVDs simultaneous with a theatrical run only in the context of fighting piracy. Many studios are already premiering films around the world on the same date to undercut pirates who distribute illegal copies of films in China, Eastern Europe and elsewhere.
In the United States, studios are pressured by a box office slump and a DVD glut that has led to a sharp decline in sales for new releases that compete for shelf space with old TV show box sets and older hits.
New technology is adding to the competition as cable operators promote video-on-demand services and phone companies, such as SBC and Verizon, are creating high-speed Internet networks that will make on-demand viewing even easier.
NATO (National Association of Theater Owners) is freaking out because the window between when a film is released theatrically and its accompanying DVD release is now only 4 months. But in reality, 4 months is a long time to consumers. Obviously the trend will be to continue the shrinking of time, but the studios will have to make concessions. One day, DVD releases will have to be simultaneous in order to beat piracy, so we predict that theater owners will demand that they receive the lion’s share of the profits from the opening weeks.
But the Studios’ faith in DVD sales is folly. People made fun of Bill Gates for announcing that “shiny plastic discs” will be but a distant memory in the future and as loathe as we are to admit it, he’s right. In the future anyone can download a near-DVD quality film to their high-end flat-panel home theater before a film is even released theatrically. What do you think will happen to DVD sales then. In fact, DVD sales are already in a slump and there isn’t even any serious piracy challenge today.
Just remember, no more SHINY DISCS.
<small>Just because Bill is right doesn’t mean we like him.</small>
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