Saturday
May082010
Saturday, May 8, 2010 at 12:16PM FCC, MPAA Clear Path for New Movies on Your TV
"Selectable output control." That's the key phrase in a new FCC ruling that will allow studios much quicker in-home delivery of their first-run films than ever before. A new antipiracy technology, selectable output control will prevent copying of movies beamed into homes throughout the country, giving distributors the reassurance they need to start the VOD process earlier than the current model.

Bob Pisano of the MPAA heralded the decision as "an important victory for consumers," adding, "and it is a major step forward in the development of new business models by the motion picture industry to respond to growing consumer demand."
I fear this is another way studios are seeking to minimize exhibitors nationwide, not so much out of belligerence but out of practicality. The piracy is a big factor, but there's another side to this. After years of conditioning audiences that they had to wait months for DVDs (of VHS, where this really started), the release windows for home video have shrunk and shrunk, and now Alice in Wonderland will be out of theaters completely by the end of May to increase the likelihood of DVD and Blu-ray sales when the title becomes available 88 days after its theatrical release.
With Disney winning approval for that, a new era unofficially began wherein movies will be in theaters for shorter durations and in your homes after only three months. And it's hard to blame the industry for making that move, since indications have shown for some time that home video sales have been sluggish. This is a move to try to pick up that business instead of keep a movie nobody's seeing lingering in 130 theaters somewhere.
The fight will be how exhibitors, nationwide theater chains and the mom-and-pop shops, focus their energy on an alternative. Higher theater rental costs for less time? Higher concession prices? A break on lower budget fare from those same studios to fill the gaps in theaters 14, 15, and 16? Because if the head of the MPAA is crowing about new business models for the distributors, the exhibitors will have no choice but to change their models, as well.
For example, this new ruling will give studios a channel for piracy-free distribution of their films into homes for 90 days, or until the DVD/Blu-ray release. It won't impact summer blockbusters quite so much initially, but the writing is on the wall, no matter how Pisano angles his comments.

"The first, and best way to view movies will always be in movie theaters - and nothing can replace the pleasure this brings to millions and millions of people all across our country and the globe. But for those people unable to make it to the theater and interested in viewing a recently released movie, thanks to the FCC, they will now have a new option."Meanwhile, The National Association of Theater Owners recognizes that battle lines are being drawn here, saying in a statement, "The FCC's decision is not surprising. Movie theft is a serious problem. The issue of the theatrical release window, however, will be decided in the marketplace." Unfortunately for the other NATO, most moviegoers see a movie in the first two to three weeks, so I don't know how much more of a decision the marketplace needs to provide. Again, for Iron Man 2 or Inception, most people would still choose theaters - there's no indication on when this new business model will unfold - but would I rather watch MacGruber or Just Wright at my house (assuming I wanted to watch Just Wright in the first place)? Absolutely. And would parents of Twihards rather have a viewing party for 20 kids at midnight as opposed to taking their little ones out to a crowded theater at that time of night? I think so. That's something else the MPAA will have to deal with: How do you monetize this venture? In theory, when I watch a documentary on VOD, I could have 40 people over for a big Art of the Steal screening and each person would be on the hook for just a few cents. So the pricing would be a major factor moving forward, because there's no way you'd get Iron Man in your house for the same cost as buying a movie ticket. Theater chains wouldn't allow it and the studios would lose money they'd otherwise make in opening weekend sales.


Reader Comments (5)
That sounds like a whole lot of suck for exhibitors. In my opinion most people are lazy and don't care about the quality bump you get going to a professional exhibition. Being an installer and really knowing the care and detail that goes into calibrating an auditorium's picture and sound a home "theater" just isn't the same.
Somehow piracy is good, as it allows one to see the movie which if he realy likes i am confident that is gona buy it. So they still make some money but they are not able to fool people with stupid movies like the ones released this year ;-)
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