Kelly Rowland, Paulina Rubio In Talks To Join ‘X … 
Cannes: Latest Theft Affects China Film Group VP 
UPDATE: Yahoo Board OKs $1.1B Deal To Acquire Tumblr … 
‘Epic’ Toon Begins $14.5M Overseas Rollout 
Cannes: Sony Classics Wins Stateside Rights To Asghar … 
‘Fast & Furious 6′ Breaks Records In … 
Specialty Box Office: ‘Frances Ha’ Triumphs As … 
‘Saturday Night Live’ Season Finale Posts … 
‘Star Trek Into Darkness’ $164.5M Global: Lower … 
Cannes: Backup Media, Memento Bring Heat To Fest Helmer Jim … 
Cannes: Sundance Selects Acquires Dardenne Brothers’ … 
Cannes: Wrekin Hill Acquires U.S. On Gabriele … 
Bill Hader’s ‘SNL’ Stefon Farewell: Video 
Cannes: The Weinstein Co. Books ‘Suite … 
BBC Confirms ‘Doctor Who’ Season 8 
Finally, Cannes Dealing! Radius-TWC Nabs Director’s … 
Hammond On Cannes: Wet Fest’s Official Competition … 
‘Vampire Academy’ Adds ‘Modern … 
RATINGS RAT RACE: ‘Shark Tank’ Finale Up, … 
Cannes: Worldview Options Andrew Dominik’s Marilyn … 
UPFRONTS 2013: The Overachievers 
The MPAA, which is the Hollywood studios’ lobbying organization, just made this announcement about the FCC’s very bad decision. I’ve said it before, and I’ll say it again: once again, Big Media shows that it doesn’t want to share its profits with anyone else. Today’s action allows the major movie studios to undercut the entire process of theatrical release. It would put the struggling cinema chains virtually out of business. (Updates MPAA Asks FCC To Let Studios Transmit First-Run Films Directly To Consumers):
Washington, D.C. — The Federal Communications Commission (FCC), saying it was “in the public interest” today approved a request by the Motion Picture Association of America, Inc. (MPAA) to permit recent movies to be sent directly to American households over secure high definition transmission lines from their cable or satellite providers prior to their release on DVD or Blu-ray.
“This action is an important victory for consumers who will now have far greater access to see recent high definition movies in their homes. And it is a major step forward in the development of new business models by the motion picture industry to respond to growing consumer demand.” said Bob Pisano, President and Interim CEO of the MPAA. “We deeply appreciate the recognition by the FCC that recently released movies need special protection against content theft when they are distributed to home televisions.”
Specifically, the issue before the FCC was a request by the MPAA for permission to use selectable output control (SOC), which would allow televisions with digitally secure interfaces to receive high-definition content from a cable, satellite or IPTV provider, before its release on DVD or Blue-ray. Using SOC protects content because during the broadcast it essentially disables non-secure, analog outputs to avoid illegal circumvention and distribution of copyrighted material.
In its order, the FCC said: “On balance, this limited waiver will provide public interest benefits– making movies widely available for home viewing far earlier than ever before – without imposing harm on any consumers.”
“The first, and best way to view movies will always be in movie theaters – and nothing can replace the pleasure this brings to millions and millions of people all across our country and the globe,” Pisano said. “But for those people unable to make it to the theater and interested in viewing a recently released movie, thanks to the FCC, they will now have a new option. For other consumers who prefer standard, linear, on-demand or DVD or Blu-ray options, these services will be unchanged.”
Editor-in-Chief Nikki Finke - tip her here.
Loading ...
so which is going to arrive first over the “secure” line: the movie or the hack to see it for free?
If anything is going to kill the theater business, it is people texting in theaters like it’s not pissing off everyone else.
I’d expect a tie between secure movie and the hack. On the other hand, at long last, movie audiences can be treated to same-day theatrical and home-viewing release! It’s been 27 years since the stunning, riveting, astonishing financial success of “Pirates of Penzance,” which brought such bounty to Universal in 1983. I know all the studios can’t wait for more of that!
I dont see how this is going to kill off the cinema chains. They are not going to allow this option while they are in the theater. The home user will be able to get the high definition video at home before the dvd and bluray though. Studios are no longer making money on the DVDs because everyone is just downloading it illegally.
Here’s the thing: if the consumer need only wait 60 days to see a first run film at home on their large, flat screen TV with enhanced surround sound why deal with parking, crowds, less than ideal seating, exorbitant pricing on snacks and drinks – all for what more often than not is disappointing entertainment. Even at $30.00 it’s a bargain for most of us when all is said and done.
Can’t really decide how I feel on this. On one hand I love the theater experience, and have many fond childhood memories of going to the theater. Yet my current home theater system puts the “real” ones to shame.
Hopefully this means theaters step up and offer better service and lower prices to attract the customers back.
I agree theaters do a terrible job these days– no control over noisy patrons, terrible food, untrained and rude employees, too many commercials and trailers (I had to sit through 7 the other day before How to Train Your Dragon at the Santa Anita AMC), and yet, I think the studios are partly to blame for this. Their greed makes it increasingly hard for theater owners to break even let alone profit. they continuously show disdain for those who create and help distribute their product, and this decision will only hurt the theaters more.
it’s not surprising, though. studios get their biggest backend cut from cable, so why not cut out the forms of distribution that the creatives actually get a decent take on. it’s not like the people who run these studios (or should I say the companies who own them) actually care about movies.
Trust me, nobody is getting rich operating movie theaters these days, especially the independent houses you remembered going to as a child. 60% of the gate goes straight to the studios and the film companies on first-run films. So, the prices you are complaining about are basically being dictated by the studios, not the exhibitors.
The move to digital cost the theater chains a bundle and a 3D lens costs about $25 grand each. Add to that labor, heat, light and power for the large auditoriums and other expenses and there is not much left. The concession stand is the one area where margins are still decent. Most independents simply can’t afford to even have the latest equipment.
I am not sure what you mean by “stepping up service”, but lowering prices in a business that is already being squeezed isn’t easy. Not that the big distributors would even allow it, lowering prices affects them too. They dictate what films the exhibitor can get and how long they must keep them.
Once theaters are gone you would of course see price increases on getting digital content directly.
Well said, Ken Royall.
It makes sense for limits releases that would not get infront of people, but this is just another way to destroy jobs in this country. The more crap we buy over the net the more brick and morter jobs go away.
Wow, hysterical much Nikki? FCC has nothing to do with studios’ decisions to cut out a theatrical release, this has to do with closing the “analog hole” that allows easy piracy. With theatrical being the biggest moneymaker for the studios right now, I highly doubt they’re going to do much to kill off that part of their business for quite some time. But hey, don’t let logic and common sense get in the way of a good headline…
Actually, theatrical release only represents 1/3 of the revenue generated by movie releases, with the other 2/3 being a combination of PPV, DVD, and Netflix sales.
Reposted by me from Chuck–
Sorry, but it’s hard to feel sorry for big theater chains which have gotten consistently worse over the years. They sealed their own fate with bad service, poor projection and sound, nasty food, and apathetic staff who refuse to do anything about rude audience members texting and talking during a movie. People should have the option of going out or staying home, especially when quality home theaters are becoming more common. If anything, this competition will force theater owners to step up their game. Sure it might kill off the bad chains, but good ones which actually care about the viewing experience (like the Arclight) could potentially thrive, and it might make going OUT to the movies special again. I never thought I’d say this, but GO MPAA.
you make a good point about the Arclight. I do think theaters like them will survive because they really create a great movie experience for people who love movies and are willing to pay for it.
RIght on. Forcing consumer choices will not play in our society. Consumers will always choose what best suits them.
This is an opportunity for exhibitors to consider what will make the consumer WANT to leave their living-room and head to the multi-plex. I love going to the movies, but until they figure it out, my home-theatre system will do just fine.
It will just encourage more IMAX – 3D films. Even if you can get the big spectacle films on your TV there is nothing like the immersive experience of the big screen to appreciate all the VFX. RomComs and Dramas will probably be more affected.
It may surprise you to know that there are people who already have screens as big as the IMAX Theaters in their own homes! LOL
I’m torn. On the one hand, as a film fan above all else, I think “OMG NO!”
On the other hand, as a writer/producer, I can’t help but think maybe this is a good thing. Think about the money that will be saved on P&A and DVD distribution, meaning less cost but more revenue. This means more movies could get a greenlight in a tough economy, creativity grows, etc
Then again, how will this affect the Oscars and other award rules, that state that movies must show in a theatrical setting. If a theatrical release is bypassed to save money, which would be a HUGE money saver for independent productions, then does that movie become ineligible?
Wow, you know, either way, this is going to cause quite a mess!
What’s the release window? If it’s days, then this might pose a threat. If it’s weeks, or even months, then I don’t know if it will be as serious as stated above. Judging by the recent theatrical numbers for release weekend hits, there are still a huge number of people, myself included, who really do like to go see a movie during opening weekend.
It will kill the DVD distributors like Netflix before it kills the cinema chains. There will always be a social element to going to the theater to see movies — not every movie, but the big ones for sure. If this becomes commonplace however, the need for a DVD is basically gone. I don’t think they intend to supplant movie theaters with this — I think they intend on making it much cheaper to distribute movies at home. Plus they will be able to control the entire process.
This should not impact providers like Netflix so much since they are already making huge strides in the streaming direct to tv business. As this mode of viewing becomes more common, actual DVDs will become less common. Companies like Netflix could become the “new exhibition” chains. However it is more likely that the studios, or their parent companies, will create home exhibiion divisions for this new model in an effort to reclaim vertical integration.
Agreed. Especially since all the new deals Netflix are doing with the big studios force them to wait a month after the studio DVD release before they can start distributing. By the time Netflix can put something out, we will have seen it 2 or 3 times and moved on to the next…
The need for DVD is basically gone? Says who? You? You might enjoy downloading movies and using bit torrent but I am for disc media all the way over all this downloading crap. DVD’s aren’t dead for me! Blu Rays aren’t either. There’s something to say for the security of always having a tangible copy of a movie at my fingertips on an optical disc versus some damned hard drive or phone line. Sometimes “advancements” in technology are stupid!
Alright John Brune, back to the cave with the rest of the Luddites!
I wonder how this affects union contracts/bonuses/residuals based on BO performance.
I think union contracts are a big part of why they’re pushing this even if it means the end of most theatrical releases. the existing contracts give creators hardly any backend on dvd/cable, and those revenues are hard for people to track.
Agreed, this move by MPAA has more to do with the WGA and DGA contract negotiations next year than trying to squeeze the theaters.
Given that this system almost certainly is addressable, and it’s not like the old PPV systems where you’d just be sent a key to unscramble the signal, unlikely it’ll be unlocked so they’re all free. If you’re not paying, the stream’s not being sent to your cable box, simple as that.
The hack will either be disabling the output disabler (quite possible that hacked boxes will be zapped Xbox style when they fail random hash checks), or when some really determined pirate invests 5 figures in a system capable of making the HDMI handshake and capturing that giant data stream uncompressed
Copy protection isn’t about locking the door, it’s about placing a lot of giant boulders, blow darts and spike pits in their path.
I don’t quite understand your argument against this decision. Theaters will only go out of business if consumers decide watching new releases at home is preferable, which is unlikely.
This only shows the studios are learning from past fears of evolving consumption practices and their misguided efforts to control them.
Kudos to them for finally supporting expanded consumer choice.
I think that more consumers will stop going to movie theatres, as watching the movies at home is more convenient. You can hit “pause” when you want to use the bathroom. You don’t have to worry about the people beside you making too much noise, or people sitting in front of you blocking your view.
The anti-copying measures won’t work.
If the theaters don’t stand together against this, they’re dead.
It’s almost charming that the studios can’t see this is akin to hitting a self-destruct button. They think they’ll still sell titles on DVD and Blu-Ray when they’re available as HD downloads (either through official channels or as free, copied versions obtained elsewhere?) They think they’ll move anything on home video without a theatrical run to plunk the thing into the public consciousness? Jump back in time a couple years and try to tell anyone that the problem with the industry is that the big, expensive pictures need to be put on a level playing field with cheapo direct to video releases.
This is only good news for the guys who’ll own and operate the platform this stuff will be distributed over–and of course the studio execs who’ll get to quietly duck out once they’ve burned everything to the ground.
exactly! that’s what people who are for this due to the studios’ right to profit don’t seem to be getting. this may be profitable in the short term, but it’ll cheapen their product in the long run. the people pushing for this are CEO’s and executives of multi-national conglomerates who own the studios and don’t give a rats ass about movies or the health of the entertainment industry. they only care about profits right now.
Bad move. This will make for higher quality ‘cam’ copies on bittorrent.
Wasn’t the demise of movie theatres predicted long ago? Seems in a post Avatar world, movie theatres’s chances of survival has just gone up.
“I’ve said it before, and I’ll say it again: once again, Big Media shows that it doesn’t want to share its profits with anyone else.”
And your point is what? That movie studios are like any other company and want to see more of the profit hit their bottom line rather than someone else’s. That’s doesn’t make them the Great Satan. It just makes them like any other corporation whose sole purpose for existence is to maximize shareholder wealth. Regardless of whether or not I agree with this, your point that it’s somehow wrong for media corporations, or any corporation for that matter, to look for ways to increase profit is a silly one.
As for this particular item. The writing has been on the wall for some time. Consumers what convenience and that means finding ways to get movies into their hands quicker rather than later. This is inevitable.
Maybe theater chains need to go out of business. They do nothing to keep audience members from taking phone calls and texting and talking during movies, their restrooms are always filthy, the areas around the butter dispensers are filthy, theaters are getting increasingly sloppy about starting on time, and they bombard you with ads … who needs the hassle. Going to a movie theater ceased being an enjoyable experience long ago. I say to exhibitors: smarten up or fade to black.
RIP Movie Theaters. Just like the Video Game Arcade.
Our poor children…..Will never know the thrill of viewing a movie with a large audience…
Again, you couldn’t be more wrong.
People will still go to the theatre, but for event movies, or movies which are necessary to be on a big screen. Or events like concerts, comedy, etc…
This won’t kill theatres at all. I mean how many independent theatres have already gone out of business because no one goes to see movies like THE HURT LOCKER. I guarantee more people would have seen that movie if it was available for download or on Direct TV when it was in the heat of its buzz.
The magic is dying.
The thrill of the back of your seat being kicked, the thrill of little kids brought to R-rated films; the thrill of cell phones going off and people answering them IN THEIR SEATS. A lot of thrill, buddy.
Video game arcades still exist. You have to know where to find them. As for this deal, this f**ks in the face of unions as well as the MPAA. This move would literally force writers and actors to work for free or as close to free as you could get. This could kill residues and harks back to a issue in the 2007 writers strike. On the other hand, this would actually hurt the viewer because the cable companies would need to raise rates on their customers because they need to find a way to make money off first run movies and can’t do so through concessions. Like it or not, everybody would need to pay for the next bomb put out by CBS Films.
With today’s audience and craptastic big-budget turdbuster, they are not missing much. HOPEFULLY, the death of the multiplex. Let’s return the theaters back to the people that REALLY care about them, instead of the greasy little sheeple that go see anything, because the commercial told them.
This is great idea, and, although it may put some struggling chains out of business it will eventually save the independent film world.
Let’s face it most of the people who would go and see a movie like the Hurt Locker are adults, have kids, lives, other things to do which make it difficult to see movies (and more expensive by about 60-70 bucks for a babysitter).
This will open up the market for Indy films to have success with different revenue streams. I, personally, would pay a little bit of a premium to see these movies at home, first run, as they came out in the theatres, rather than wait for the video 3 months later, when the bloom has come off of the rose.
Nikki, you couldn’t be more wrong on this one. This will wind up helping the industry more than hurting it.
Are these “struggling cinemas” you speak of the same ones that recently cost me $50 for tickets, plus another $15 or so for a single drink, bag of popcorn, and Sour Patch Kids, then showed me television commercials for 10 minutes before the actual movie trailers started?
Your disgust is aimed at the wrong people. Film rental rates are high as hell. The exhibitors have little choice but to charge what they do. The studios and distributors run the show, they dictate the terms. What is really fun for the theaters is when they bring in these so-called “blockbuster” films at high rental rates and the movies are so crummy they die out the first weekend. The exhibitor cannot just send them back. They have to show these films for at least the next 2 weeks even though nobody is coming in. Not a fun business these days, trust me.
I really think this will not effect anything for a while. I would imagine they are going to price the movies really high (around $20), the world is digital, theaters are going digital, and soon enough will have digital streams direct from other movie studios of the latest releases.
I am sure there will be hacks of this system, but that is par for the course once you enter the digital world. Look at screeners, they are ripped and put on the net within hours after they are given to “press”.
I say, press on movie companies, it may even allow for smaller movies to get more representation that before, and have more direct data from consumers on what is liked, watched etc.
“This action is an important victory for consumers who will now have far greater access to see recent high definition movies in their homes. -REALLY?
I love leaving my home to see ironman 2 on the big screen not my sitting room.
How is that a victory for the consumer?
I have never met anyone who would want to see let’s say the new batman film in 2012 on their home tv first.
This will destroy the window to have dvd/bluray to keep format,then people will say hey man im getting ironman 3 on saturday,let’s ALL watch it at mine,big loss for the studios.
Worst idea ive heard in a long long time.
It may not be the best news for theater owners (although I don’t think it’s going to truly cannabalize their business) but it’s really good news for consumers. Personally, I’d love to see movies come out on demand the same day they arrive in theaters. That way, those who want the communal experience of “going to the movies” can enjoy that and those that want the convenience of watching at home can also enjoy a movie they may never get around to seeing otherwise. I would happily pay $25 to see a movie at home the night it comes out in the theaters. The biggest expense for married couples w/ kids going to the movies is babysitting (maybe $80 for 4 hours in Manhattan) and neither the studios nor the exhibitors get a piece of that. If first-run movies on demand start to become a signifcant revenue source it may even influence the movies that get made and only, say, 80% of the industry will be aimed at 14-year-old boys.
You’re all crazy. There will always be theaters. People might not start going less, but that’s not a big deal. This is sensationalism for the sake of sensationalism.