In a keynote speech at industry confab ShowCanada, NATO President & CEO John Fithian today urged Canadian movie theater operators to be vigilant in their focus on theatrical release windows. Challenging a recently announced proposal from four Hollywood studios to release movies early to the home on “premium” VOD, Fithian explained the dangers of the model. “Early VOD releases to the home could damage the movie industry in two significant ways,” Fithian asserted. “Early releases will reduce movie ticket sales, and will exacerbate movie theft by giving pirates an early pristine copy of movies.” Fithian also reiterated NATO’s call for the participating studios to release sales data from their experiment. “How can the industry evaluate the studios’ test if they continue to hide the facts.”
Fithian’s remarks at ShowCanada marked an expanded, global phase in NATO’s work to preserve the theatrical release window. Beginning with Canada this week, moving to Europe later in the month and onto Australia in August, Fithian will hold dozens of meetings with leading international exhibitors on the topic. “We hope that this early VOD experiment begins and ends in the U.S.,” Fithian continued. “But if not, we want exhibitors everywhere to be prepared.”
In his remarks, Fithian also praised the growing number of leading movie directors and producers who have publicly stated their concerns with shortened release windows. “The creative community understands the vital importance of robust theatrical release windows to their art form and their business interests,” Fithian stated. “We are pleased today to announce additional signers of our creative community letter, including directors David Dobkin, Jon Favreau, Chris Nolan, M. Night Shyamalan, and Quentin Tarantino, as well as producers Mark Boal and Jim Cardwell.”



Smart move, getting talent involved. The only way the studios might back off is if the top tier directors refuse to let their film be a part of the premium VOD (kind of like when certain directors rejected HD-DVD in favor of Blu-ray).
That said, did that first wave of titles here in the US have any kind of effect on the Theatrical model? 60 days sounds like it is a lot sooner than it is. The first crop of films were all titles that had already completely ended any significant elements of their theatrical runs.
Hear, hear! From a piracy perspective, every VOD film that has been released before the theatrical or home video run has had a high quality version floating around for everyone on the internet.
Now if only John Fithian would discuss with other Canadian theatre owners the ridiculous ticket prices offered by companies like Cineplex and AMC. $12.75+ is not affordable for large groups of people in this economy. That’s (partly) why they’re pirating. An earlier Deadline report on Pirates of the Caribbean: On Stranger Tides’ 3D failure had a quote from a Wall Street analyst that stated US ticket prices for a 2D screening are on average $7.60. The Canadian dollar has been at par or above the USD for over 5 years now. Time to lower it to near the mythical $7.60 US average. You can keep the high concession prices – we know that’s where you actually make all your money, and I never buy theatre chain concessions anyway. http://www.deadline.com/2011/05/analyst-pirates-was-hurt-by-3d-as-consumers-tire-of-high-ticket-prices
I really find it disheartening that directors I have respect for have so little respect for me. Times are changing and the public is making it’s needs known. If we say it’s time for VOD over theater, then that’s what we want. How are you gonna fight the consumer?
It’s simple – vote with your wallet and use the service. If enough people do it’ll happen. Personally I don’t care either way.
many people support VOD because seeing movies in the theatre (regularly) is unaffordable. also, people make too much noise during films and ushers don’t even attempt to shut them up, but that’s another issue
Well said.
These guys have such big egos they think they can change how I want to consume media. And btw, when one of these guys gets a taste of first dollar gross from the huge VOD weekends – they’ll all cave.
This is not a fight against the consumer. This is a fight against piracy and the destruction of profit windows. Windows that pay for content.
Unless all you’re after are cheap-a$$ webisodes….
V
Nice try with the piracy boogeyman argument.
No, this is a fight against the consumer.
The movie industry wants to get your money at release, get your money for VOD/cable/satellite, and get your money again to buy or rent the DVD.
They stubbornly refuse to give the consumer the access they want to their IP, and THAT right there is a huge reason why so many consumers turn to piracy. They feel legitimized doing so because it is asinine and non-sensical the way the movie industry controls the MEANS by which we consume their product.
Most of the players against are 1st Dollar Gross Participants. Reducing the window between Theatrical and VOD reduces their BO take, which they’ve earned, negotiated and deserve through a quicker segue to ancillary participation, which is also earned, negotiated and deserved. But if truthiness is being used against studios, truthiness of all motivations for being against should also be revealed.
Movies started out as VOD 120 years ago, except they called them peep shows and you bent over an Edison kinetoscope and dropped a penny in the slot.
The mass audience experience is what makes entertainment entertainment. Sure, you could put on a CD instead of going to a concert. You could buy a box of Cracker Jacks instead of attending a circus. You could read out loud to yourself instead of seeing a play. You could also look at a picture of the Grand Canyon instead of visiting it.
Just because something is possible doesn’t make it equal.
Right on! Still can’t beat the theater experience.
Huh? Theaters suck.
Super expensive.
Inconvenient.
Worse picture and DRAMATICALLY worse sound than my home theater.
Obnoxious theater goers with cell phones, etc.
Maybe 10 “good” seats in the whole theater.
Insanely expensive “snacks.”
You can’t pause to go to the bathroom.
I’m sorry but with a few exceptions, the theater experience is a dead man walking.
Cinema purists, like Christopher Nolan (whom I have great respect for), want people to see films on the big screen, but here’s the problem… the theater experience is going to become a rarity as families with children, senior citizens and people with disabilities are priced out of the theater experience, through high ticket prices and equally high concession prices, while incomes are either stagnant or are shrinking.
In Chicago, our ticket prices are ridiculous, too… it’s $13.95 for a 2D movie, and $17.95 for a 3D movie, because 3 different sales taxes and Chicago’s amusement tax are slapped onto the ticket price. I’ll gladly wait a few months and buy the movie I want to see on DVD or VOD for the same price as a movie ticket.
There are those who say you “still can’t beat the theater experience…”, but only if you can afford it, and a lot of people are deciding that there’s no room in their economy for the theater experience, so they’re looking for alternatives which are not only easier on the budget, but also gives them more flexibility.
Good luck. But I have a feeling that this will just end up creating an opportunity for someone else to make money (probably Apple, Google, and Netflix).
No one is saying you have to go see the films in theaters.. just that if you choose not to, you’ve got to wait. Seems fair enough. It’s their product to sell, and your right not to buy.
Its an artificial restraint on trade.
Its actually monopolistic behavior, if our government had any balls to go after Hollywood.
Kung Fu Panda 3D = $15 per ticket.
Family of Four + Friend = $75
With popcorn and drinks = $115
Same movie through VOD and unlimited friends and family = $30 (approx.)
In the comfort of home with own food and restrooms (plus “pause” and “rewind”) = priceless
I have great respect for Chris Nolan, and I believe he is against this not just for the piracy issue but because he wants people to see his films as he intends them to be seen – on the big screen. He’s a cinema purist and I’m with him.
Bingo, same thing with Tarantino, they are cinema purists and want that people should see films in theaters as the filmmakers intended. Nice catch.
Seriously I couldn’t give a shit either. The main problem are these exorbitant ticket prices. 13 frickin’ dollars for a ticket in NYC. WTF! VOD helps the guy or gal who has three kids that want to see a Pixar flick without him or her going broke in the process. Besides the shelf life for any decent movie nowadays is three to four weeks max. Habits have changed. People are strapped for cash. Bring on the new models.
I agree. Throw in parking, concessions and tickets and you’ve got a hundred dollar night for four. VOD offers a choice to spend less money with the added luxury of not having to suffer through five or six trailers. Memo to theater owners: you can’t stop technological progress. The music industry tried and failed (remember they also trotted out artists to take up their fight too and that failed) Figure out a way to work within the VOD model and craft yourselves a new model that will make going to the movies profitable in the coming VOD world.
Finally! Now I see the current movies everyone is talking about without having to venture outside.