In yet another strategy to keep up in the streaming age, Warner Bros. and Universal Pictures are in discussions about releasing their films earlier on VOD, as a way to not only reduce movie piracy, but to also maximise on costly advertising that could then be used for both cinema and home release of their movies, according to Variety. Most major studio releases become available in homes approximately 90 days after they premiere in cinemas, but this debate is likely to reignite conflict between these major movie companies and the cinema chains.
It is not known now if this decision will reduce the theatrical windowing (the amount of time a movie spends exclusively in cinemas) or if it will remain the same and only reduce the amount of time a movie spends in limbo after it’s out of the cinema and before its home release. The two companies are expected to further discussions of shorter windowing in 2019. The main sticking point are the exhibitors that feel a shorter release window would harm cinema chains as audiences may forgo seeing a movie in the cinemas for waiting a shorter time than usual for its home release.
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Major movie companies have previously considered having VOD releases for their movies still in cinemas, particularly once a movie starts to end its cinema run and plays in fewer screenings. This news follows last year’s abandoned deal, where major studios and cinema chains came close to an agreement to have their movies released within weeks of their cinema premiere, as long as the cinemas would receive some of the profits made from the home releases of these movies during this early release period.
The only major movie company not involved in this deal was Disney, who is retaining the current release strategy that separates movie releases in the multiplex and in the home, with up to three months in between. This push for shorter windowing has been further complicated by Disney’s ensuing buy-out of Fox’s film and TV products, which will give the company a large percentage of the total box office, making it alone represent 40% of the domestic market share.
Disney, Universal Pictures, and Warner Bros have declined to comment on these plans for next year.
