Movie theaters face a lot of problems but competition from premium VOD probably won’t be one of them, Moody’s Investors Service says in an industry report today. The debt rating company says that studios probably will continue to wait more than four months before offering new films to cable and satellite VOD “because it is in their economic interest to do so.” For example, they depend on theaters to show trailers for the studio’s upcoming films. Also, any decline in box office sales could affect the whole value chain including home video sales and pay TV deals. Theater owners will find little else to cheer in the report. It says that the movie business is “mature and business risks are increasing” as consumers spend more time playing video games and surfing the Web. And 3D “isn’t a cure, although some 3D features will continue to draw crowds at premium prices.” The bottom line: “movie theater owners might need to rethink their longstanding complacency with high debt levels and shareholder-friendly policies to maintain their debt ratings.”


I am shocked. 30 dollars for 4 month old movies did not take off?
Actually, is is $30 for a 2 month old movie, or $30 for a movie 30 days before it is $1 at Redbox, or a part of your Netflix monthly fee.
I’m shocked that the studios and theater owners think operating under the status quo will somehow fix things. Memo to you: people woke up and realize they don’t need to spend $25 a head for (sometimes)crappy product and overpriced concessions. It’s only a matter of time before the studios launch movies on demand as an alternative.
i agree the theaters need some major changes to get me to come back in most of all is age branding say only 18 or even better 21 and over only theaters so i can lose the “I’ll kill ya beczz you step on my white shoes and I nedify Respcts! crowd” with their pants dragging on the ground
lets team up a good theater with up to date seating and sound picture with this
http://www.daveandbusters.com/
drinks- pool and good/OK dinner
In the short term this means nothing…the long term is VOD DAY AND DATE…at a fair price…game over!
I wonder if movie theaters will ever do a Netflix type of thing. A monthly fee and comes see as many movies as you want? The snack bar is where they make their money from anyway.
That’s what MoviePass was trying to do and they killed it.
Shorty after this they went back to developing the board game Risk into a feature film
Just like music labels— movie theaters killed their business over greed. Everyone charging too much.
I have seen two movies over the last year in the theater- paid 45 bucks each time. Movies are not worth this.
I am out of the routine now. 10 years ago- I went to see almost 20-30 movies a year. tickets were 7 bucks back then- they have almost doubled now. Theaters have shot themselves in the foot.
I agree with two things. Business risk are increasing and 3D is not a cure.
I completely disagree that VOD is not the competition. When A family of four has to spend close to a hundred dollars on movie tickets, they are not going to come to theaters. Believe it or not, were in still harsh economic times were gas prices are just starting to drop.
People can wait to watch movies on VOD and or any online platforms cause it affordable. Let me say again affordable. And to point out, who says people can’t watch trailers online. Hmmmmm!!!!
Let’s just put it this way, theatres are going to become like theme parks where people will go there once in a while. 3D is just a gimick that will bring out audiences to the theatre every so often because they are becoming even more expensive.
The ultimate solution is for consumers to stay at home, play video games that actually have more story structure and surf the web for the next best thing until it comes out on VOD.
Hence the studios will soon realize that it’s not in their best interest to keep movies in theaters for so long. Studios will also realize this, when fly over states capitalize on advancing their home entertainment system.
Just point out, plan facts here folks.
Where the hell are these $25 and $45 dollar theaters? I go to the Grove for eleven bucks. Maybe y’all should find “less fancy” venues!
I’ll go back to the theaters when owners get serious about shutting people up, jamming cell phones or throwing people out for their horrible behavior. Until then Blu-ray, surround sound and my 42″ TV serve me well.
This is actually happening in Providence RI. D&B and the theaters are on their own level separate from the rest of the mall. After 9pm most of the kids/punks are gone, and it ends up being a great date spot
A report from Moody’s, the geniuses that rated subprime mortgage bonds AAA? Pass.