Four Hollywood studios are expected to launch a video-on-demand (VOD) service near the end of April, according to sources. The new service will provide access to current movies about two months after their theater release date. The cost is said to be about $30 per month. The subscription service is expected to be launched first on DirecTV, though other cable and internet companies are expected to follow.
Sony, Fox, Time Warner, and Universal are expected to take part in the new VOD service. Paramount bowed out, according to reports, due to piracy concerns.
Theater owners, who are used to having a 120 day window prior to competition from other formats, are complaining about the movies being released on VOD after only 60 days. The National Association of Theater Owners refers to it as “profit-cannibalizing self-competition,” and say that it would be “irresponsible to put today’s successful model at risk by introducing a potentially destabilizing change…” to the current system.
Which movies will be the first to appear on the premium VOD service are being speculated about online. Adam Sandler’s “Just Got With It”, “Unknown”, “Cedar Rapids”, “The Adjustment Bureau”, “Paul”, “Half Pass”, and “Red Riding Hood”, are commonly mentioned. As of today, however, which movies will be available has not been publicly confirmed.