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.


The cynic might think that film culture of the 1970′s Golden Age will never return, but television might give more “challenging” films a chance to get made. HBO’s “You Don’t Know Jack” is such a film that would NEVER be greenlit by today’s Hollywood. Levinson says television might be the only option for artists who desire to make “real drama”. Losing the cinemas will be a tragedy, but I think a wider variety of films will emerge as a result.
They’ll do like the rest of the world and either adapt or die. If the only thing you have going for you is “we’ve never bothered exploring other tech” then you’ve got nothing at all. Give people a REASON to go to theaters, give them a better experience then they can have at home and they’ll pay. Artificial scarcity ceased being a viable business model the day the internet was opened to the general public.
Movie Theater Owners did this to themselves the same way Music Labels did. Clinging to the old paradigm and whining about the future coming at them like moviegoers or the FCC should be on their side?
High priced low quality social experiences rife with hassles getting to and from, expensive and inconvenient parking, disgusting and overpriced food/snacks, etc….
Every complaint you’ve heard a million times and said half a million times yourself.
They have only themselves to blame.
Kick ‘em to the curb and embrace Next.
50% of ticket revenue to the theater owners for providing what is increasingly a disappointing experience.
Studios can cut the P out of P&A, lower price point for viewing [like iTunes did] so the point of piracy is moot, have millions of “screens” instead of multiple thousands, and not only see increased profits by cutting out the middle men but also quicken the film ultimates back into studio/prodco coffers for ongoing production and stockholder satisfaction.
And as for the shared cultural experience of seeing a movie in on a big screen with a huge audience, f*%# that.
99 out of 100 times the place is filthy, other people in the audience are rude, on their phones, talking to each other or the screen, eating with their mouths open, spilling their sh*&+, dropping their trash or climbing over you to and from the can multiple times during a movie you fought to get to and waited through 30 minutes of advertising to see.
For me and mine, this can’t happen fast enough.
Tonight, my place, my big screen and sound system, my family, our food and drinks, on our schedule sans hassles without feeling ripped off.
This is not going to kill the theatrical experience. Only X number of theaters in the country and only X number of movies can fit on them per year. Trust me, the theatrical experience is only going to get better and better. Some movies won’t make it to theaters and may find business via VOD / streaming, etc. Which is great.
That’s OK, I said the same thing about drive-in theaters.
Maybe we’ll all finally be happy when we never have to leave our houses or interact with other human beings, ever again.
I like seeing movies when they are having their cultural moment. At the same time, I’m at a point in my life where my time is a lot more scarce than money. And, because of the logic of today’s windowing system, that’s why I don’t see more movies.
A movie may be two hours, but the process of traveling to and from the theatre and padding my arrival time so I can get a decent seat means it is a four hour experience at least. I may expect the movie is worth the $10 ticket, but I have to think it’s going to be really special to make it worth the four hours.
Thank you MPAA – you’ve got this consumer’s interests in mind.
Great victory for lazy homebodies that can’t leave the house for a couple hours and join society in a theater.
I don’t think its going to kill all movie theaters. Take AVATAR: one reason that movie was such a hit was that you could immerse yourself in a huge 3-D screen with huge sound. It was a real experience. TV and movies didn’t kill live theater – just limited them. This’ll be the same. There is a real benefit to any family that doesn’t have legacy wealth or a mid six figure job being able to entertain itself w/o forking over $85. And lets face it – with the rate at which middle america is being stripped of any real wealth-generating opportunities, we need this kind of thing.
I’m not saying this is a good decision for the movie theaters.
However, any business has the right to make money in any legal way they choose. If Disney decides it wants to release Toy Story 9 directly to the internet for $9.99 a viewing, they have every legal right to do that.
I’m not saying it’s good for theaters. I’m not saying it’s a good way for consumers to view movies.
I’m saying the courts have no legal justification for nixing the idea.
as someone who can’t stand watching movies at home, it saddens me that the communal experience may be going by the wayside. movies are special when you go out for them and make it a whole evening. they’re meant to be seen on the big screen where you can put every other thought out of your mind. at home, the phone rings, the dogs need to go in and out, there’s a project that nags at you.
ugh.
this is an outrage and will ruin the movie industry. its worse than the idea of switching from film to digital.
No, no, no. Keep the movie theatres, bypass the distributors.
This is potentially good for films that don’t get played in theaters outside NY or LA. If there was a sure way that they weren’t going to get pirated. Of course, they’ll get pirated, so wtf are they talking about? Do they really think that if you can plug it into your TV someone isn’t going to figure out how to pirate it?
People will continue to go to the theaters – it’s a social experience. Digital technology will alter the market distribution windows causing re-ordering rather than what is suggested in the title of this article. Research data shows that the advent of streaming has not resulted in a significant decline in TV viewing; people are simply consuming more and in more ways. For example, nobody thought that people would watch long-form video content in mobile devices… yet they are. And now that the iPad is here with iAd monetization… I’m glad I’m in the online film distribution business!
I don’t know if this is the END of movie theaters. Where are teenagers going to go? The malls close at 9 pm, and if you want to get away from adult supervision, then the movies are pretty much the only place for teenagers to go (for the ones who don’t live in large cities).
I suspect at least some of the people who would take advantage of this are the ones who wait to watch movies via Netflix anyway.
I’m not saying it won’t hurt movie theaters at all, it just may not be the END of them.
I guess our kids will just have to settle for watching a film in comfort and quiet. Instead of sitting in a movie theater and listening to people talk to each other, talk on the phone, type on their smartphones, clap for the actors (wtf? it’s a freaking movie. they can’t hear you!), listen to babies crying (why bring a baby to an action movie? any movie?) listen to people argue, have people try to warn the actors about impending danger.
Am I the only human being left that wants to watch a movie in peace in quiet and not have to deal with rude people while trying to enjoy a good story w/ my wife?
I’m not a dinosaur, i’m 30 years old. I can’t be alone in thinking this is a good idea. If theaters would make an honest effor to curtail this kind of behavior then I could have some sympathy for them. This kind of stuff happens at every theater i’ve been to regardless of time of day or night. Although it gets worse at night. AMC, Cinemark, Muvico, Lowes whatever, doesn’t matter. Good riddance theaters. All they care about is making money, pay your $15 admission and who cares if you can’t hear the dialogue.
Seriously, have any of you been to a movie theater lately? It’s no longer much of a fun experience and criminally expensive. Will you really miss the experience of some teenager shining a laser pointer at the screen during the whole movie, people talking during the whole movie, people on their cell phone during the whole movie, crying babies, etc.
Hard to see how exhibition, and the local ads (admittedly nonexistent anymore) will survive this. Regional marketing likely gone too (again, already on lifeline but still).
There will always be some cinemas for nostalgia I guess but inside of 20 years hard to see it as a viable.
People have predicted the death knell of movies before though. Would be happy to be wrong but the kids love stealing and watching stuff on phones. Give them what they want – even if it kills your product.
Who cares if it disables the analog output? It’s not like it’s all that difficult for someone to set up a camera on a tripod in front of their television screen. I mean, if they’re willing to go in theaters right now with a camcorder and put up with audience/security… isn’t it just getting easier for them?
Yep, that’s what I’m thinking…
So… why can’t content producers decide on their channel of distribution?
MPAA’s announcement isn’t new. We already HAVE this on Netflix – it’s called ‘Instant’ viewing. The only difference is the box office of the films released. Netflix so far releases only small budget or foreign films; whereas MPAA will be releasing blockbusters. The point is that releasing films on cable directly to viewers is already here, it’s a fact of life and MPAA is merely acknowledging that fact.
And the date of release on cable doesn’t appear to be new either. Netflix releases its films the same day as the DVD release, whereas MPAA will release it just ‘before’ DVD. That ‘before’, however, almost certainly will NOT be a week or a month earlier but at best nor more than a day or two – so, again, there’s little difference between MPAA says it’s going to do and what’s already happening.
Have to face reality, Nikki. The movie chains are soon going to be a thing of the past. Yes, one will miss the experience of seeing a film on a massive screen, the smell of popcorn and the ohhs and ahhs of the crowd. But unfortunately – as so many people are discovering – that enjoyment is crushed by the huge prices and the inevitable obnoxious couple one row in front of you who always seems to pick a fight just as the pivotal scene starts.
1920s: Radio – no more movie theaters
1950s: TV – no more movie theaters
1960s: Color TV – no more movie theaters
1980s: The VCR – no more movie theaters
1990s: Cable and DVD’s – no more movie theaters
2000s: The Internet – no more movie theaters
LONG LIVE THE MOVIES!!!!!!!!!
I can do you one better:
Response: Theaters responded by seeing their silent movies become talkies.
Response: No real response, but theaters did respond by making sure that your local movie house was the only place to see up and coming stars. That change had to happen because TV was poaching their ready made stars such as Lucille Ball. Plus, Drive-ins were created.
Response: The first trip into 3-D for the theater plus theaters were the place to go for good clean campy fun.
True the VCR had an affect on the industry as it made it possible for the movies to be released to tape in your local rental store, but the 1980′s are a golden age for theaters. There are even websites dedicated to movies made in the 1980′s. Plus actors that had their start in television, such as Tom Hanks, Eddie Murphy, Michael J. Fox, and Robin Williams, moved onto movies. I even include Shelly Long in this list because I think “The Money Pit” is a great movie. Finally, Disney used the theater to re-release most of their classics onto a new audience.
Response: People continued to go to the movies dispite no major upfront change in format though CGI started to show its head this decade. The only change that happened is that we seen two real blockbusters this decade and they are the Jurassic Park franchise, and Titanic, and The Lion King to a lesser extent. Remember that the theater only needs one major hit to make mounds of money.
Response: CGI started to show on animinated films, but 3-D is showing to be a real lifesaver due to new technology out there. Also, theaters will be able to stream more live events and will show 3-D Television of sports events. With that said, I would think people would love to see the next Super Bowl in a I-MAX theater compared to their home theater system.
I find it interesting that a press release from the MPAA would misspell Blu-ray as ‘Blue-ray’ in the 3rd paragraph.
Seriously?!? They think the secure line will avoid someone recording the broadcast from their living room? I’m curious…is the talent ok with competing with TV?