As Premium Video-on-Demand Draws Closer, Theater Chains Threaten Studios

Apr 11, 2011  •  Post A Comment

As premium video-on-demand becomes closer to reality, with a plan in the works that would allow consumers to pay $30 to watch movies on their televisions just eight weeks after they open in theaters, the largest U.S. theater chains are threatening the movie studios, reports the Los Angeles Times’ Company Town blog.

Regal Entertainment and AMC Entertainment are telling movie studios that they will not either play nor promote any movies that are part of the premium VOD service, according to the report. The theater chains are worried that some people may prefer to wait until they can view the movies at home, rather than go out to a movie theater.

Regal is also reducing the number of trailers it shows from the four studios involved in the premium VOD debut, which are 20th Century Fox, Sony Pictures, Universal Pictures and Warner Bros. That’s because Regal hasn’t been told which movies will be part of the premium VOD service, the story notes.

DirecTV is slated to become the first TV service to provide premium VOD, the story says.

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