Comcast COO Stephen Burke has said his company has held talks with movie studios about offering movies on VOD the same day they debut in theaters, reports Reuters.
As usual the biggest pushback has come from theater owners, who see their business model as threatened from such ventures. The talks are unique in that most have previously centered around cutting the VOD/DVD window but leaving theatrical intact.
Burke says day-and-date VOD movies could cost between $30 and $50.
At first that price point seemed extremely high to me since people weren’t getting the amenities of the theater along with the film for that price. But then I thought “What amenities?” and also put it in perspective with take-out dining. If I get, say, Applebee’s To Go I pay the same for my food and am fine with that despite the fact I’m not also getting the “experience.”
So the price point is comparable with a trip to the theater for two or four people, depending on concessions. That’s got to scare the bejeesus out of theater owners. It’ll be interesting to see how this works out or if someone’s greed or stubbornness derails this process.