Company Town

The business behind the show

« Previous Post | Company Town Home | Next Post »

Fight over premium VOD between studios and theaters reaches new level of vitriol

May 12, 2011 |  1:19 pm

The fight between theaters owners and studios over premium video-on-demand releases is getting downright ugly.

Johnfithian The trade group representing the nation's theaters Thursday dismissed efforts by Time Warner Chairman Jeff Bewkes and CBS President Les Moonves to defuse tensions with exhibitors, who have been angry about moves by studios to make movies available for purchase in viewers'  homes only 60 days after they debut on the big screen.

Speaking at an industry conference, Bewkes appealed for calm. "There's too much excitement about this" he said, while stressing mutual interests shared by studios and exhibitors. "Nobody wants them to be at risk." Moonves, who also spoke at the conference, said: "I know theater owners are scared" but "they are going to have to change a bit to prevent a crisis."

John Fithian, president of the National Assn. of Theatre Owners, would have none of it. "Forgive us if we decline to take business lessons from the end of the industry that enabled the erosion of value in the home market,'' he said, referring to proliferation of low-cost DVD rental services. Fithian said offering movies for $30 in the home would only encourage piracy.

"Studio bosses should spend more time talking to their partners about models that might work, instead of asking us to calm down,'' he said.

Representatives of Bewkes and Moonves declined to comment.


Theaters to studios: Share data on premium VOD experiment

Theater chains escalating fight with studios as premium video on demand looms 

Hollywood firming up launch plans for premium video on demand

-- Richard Verrier 

Photo: John Fithian, CEO of the National Assn. of Theatre Owners. Credit: Ryan Miller / Capture Imaging