MoviePass made waves earlier this week by dropping its monthly subscription cost for unlimited movies in theaters to $9.95. But soon enough you may not have to go to the theaters because Apple is trying to bring new releases to your devices at home.
Multiple studios, including Warners Bros. and Universal Pictures, have joined talks with Apple and Comcast to create a plan that would offer digital rentals of new releases just two weeks after they hit theaters. But because these are new releases, they won’t be as cheap as what you’d currently find in a place like iTunes or Google Play. The goal is “to create a $30 to $50 premium movie-download product,” according to Bloomberg.
Interestingly, Disney is reportedly the only major studio not interested in creating a digital product, probably because they plan to create their own streaming service in 2019.
Movie theaters are understandably not thrilled with this development with Apple and Comcast. That’s why the studios want to give theaters a cut of revenue in exchange for their blessing:
They have discussed sharing a split of the revenue from premium video on demand, or PVOD, with the cinema chains if they give their blessing to the concept. But the exhibitors have sought a long-term commitment of as much as 10 years for that revenue split, which the studios have rejected, the people said.
If this plan comes to fruition — Bloomberg reports it could happen as soon as early 2018 — it would provide a great study of just how much people value viewing a film on the big screen.
[Bloomberg/Photo: Retail Design Blog]