Studios still making bad choices to rake in more profit

[Toruk Makto]

Early release VOD is a bad idea. Very bad.

http://www.hollywoodreporter.com/news/james-cameron-vince-pace-reveal-176803

['Itan Atxur]

I don't understand. Why is that bad? I didn't read the entire article but that sounds pretty cool to me.

[DJ Makto]

I don't understand. Why is that bad? I didn't read the entire article but that sounds pretty cool to me.

Primarily because its another nail in the coffin of the theater experience, i.e. imagine not being able to experience Avatar in theaters.

['Itan Atxur]

How does this affect theaters? Perhaps I misread the article but isn't this aimed at TV broadcasts?

[Txur’Itan]

Opposition to VOD services is complicated, and clouded by the fact that is one piece of a larger strategy related to improving revenue at the box office.  Box office profitability is frequently touted as a necessity to bring the levels of entertainment value expected from movies by the viewing public.

Collectively, there are many issues leading viewers away from theaters.

The home theater market is partially "blamed" by various studio executives for diminishing theater attendance, DVD, BluRay, VHS, VOD.

Accelerating the transition from Theater to Homes by any means is thought to further exacerbate this issue. 

Another issue with having quick access to theatrical productions two months after release undercuts move ticket prices by roughly 75% (2 parents 2 kids EST) even at $10 a viewing when you consider that theaters charge per viewer, and VOD charges one price for the whole family to watch at home.  This is not a precise estimate, but you can see the statistical potential for lost revenue in the example if you do a bit of math.

When Avatar released, AMC theater ticket prices jumped 30% across the board for all theaters and all movies, and then lowered back down a bit after theaters saw the impact of their greed causing the exact opposite of their desired results.  I am uncertain of other theaters, but I think if I did some more research I would find similar trends for other theater ticket prices.  Theaters and production companies need attendance numbers to be high for them to make money, and they reduced this attendance considerably when they jacked the ticket prices high for all movies.

3D Tech properly deployed was part of a larger strategy to raise theater attendance and improve studio and theatrical profitability, by adding value to the viewing experience that viewers would be willing to pay to experience.

Pushing VOD to change prices, or to prolong their waiting period before showing theatrical movies is one more piece of the strategy.