Premium VOD: New Distribution Model from DirecTV?

The nation’s No.1 and No. 2 satellite TV providers may be looking for new ways to provide movies to consumers. Dish Network (No. 2) recently purchased the assets of bankrupt Blockbuster for $320 million and may use the company’s online streaming service to take on video rental enterprises such as Netflix.

Meanwhile, DirecTV (No.1) is reportedly in talks with Hollywood studios regarding a new movie rental service that would provide $30 rentals just two months after films’ theatrical releases. Studios that are looking to combat slumping DVD sales believe that some consumers, especially families, may be willing to pay the higher fee for access to titles prior to their availability on DVD or from services such as Netflix.

Analysts explain that movie studios are open to new online streaming or pay-per-view models in order to recoup revenue from declining DVD purchases. We may also see $30 premium movie-on-demand offerings from cable firms such as Comcast and Time Warner Cable.

Related TVPredictions.com post: “DirecTV to Offer $30 VOD Next Week?” (4/15/11)

Related Engadget post: “DirecTV, Comcast, Vudu could start offering premium VOD $30 movie rentals in April” (3/31/11)

8 Comments

  1. DirectTV and Dish gear are expected to offer a $30 premium on-demand service in a new window that immediately follows the theatrical release.
    Will this impact the theatrical box office?

  2. DirectTV and Dish gear are expected to offer a $30 premium on-demand service in a new window that immediately follows the theatrical release.
    Will this impact the theatrical box office?

  3. We should be able to find a better alternative than $30 rentals. Don’t we run the risk of alienating viewers? (They’re already complaining about $10 theater tickets.) And I’m not sure I buy into the family argument, since so many people are consuming content on their own…

  4. We should be able to find a better alternative than $30 rentals. Don’t we run the risk of alienating viewers? (They’re already complaining about $10 theater tickets.) And I’m not sure I buy into the family argument, since so many people are consuming content on their own…

  5. I like the idea of getting the movies to the home faster, but #30 is just too much.

  6. I like the idea of getting the movies to the home faster, but #30 is just too much.

  7. I can see an argument for the movie going family. $30 is easily a bargain for 2+. Of course there will always be the dedicated theater buff who wants that big screen experience. It’ll be interesting to see if it plays out.

  8. I can see an argument for the movie going family. $30 is easily a bargain for 2+. Of course there will always be the dedicated theater buff who wants that big screen experience. It’ll be interesting to see if it plays out.

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