Cinema chains trying to build support for 'theatrical windows'

There has been a lot of talk this year about new video-on-demand (VOD) services offering movie-goers a chance to pay a premium in order to view new-release films in the comfort of their homes rather than in the theater.

Cinema owners are, predictably, not thrilled about this development because it will steal away revenue from their businesses, which have already suffered diminishing attendance. Now, along with the National Association of Theater Owners, they are pushing back against some of the studios who want to provide consumers with earlier access to new releases.

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"A 30-day window makes absolutely no sense to us whatsoever," said Gerry Lopez, chief executive of AMC Entertainment, the nation's second-largest theater operator. "We're concerned about the grave consequences this could bring."

CEOs like Lopez fear that closing the window that exists between theater releases and in-home access will further reduce his company’s ticket-sales volume. Across the industry, cinema attendance has fallen 3.4% this year after being stagnant the past five years.

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"We are reaching out to the creative community and the business community because we think some of the studios are moving down a path of a bad business model," National Association of Theater Owners president John Fithian told the LA Times. "They risk losing two dimes to save one nickel."

Others in the industry worry that “premium” home access to new releases will ruin the cinematic experience that producers work hard to provide.

"We don't make movies for the small screen, we make movies for the big screen," explains Jon Landau, producer of James Cameron's hit film Avatar. "Television is a great art form, but it's an oxymoron to say we're giving you a premium experience on TV."

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Some, however, realize that developments in technology are a major force driving consumer behavior, and the industry needs to learn ways to adapt and work with it, rather than against it.

"We are exploring every conceivable additional revenue stream out there," said Universal Pictures Chairman Adam Fogelson. "The facts are irrefutable that our business models are under an extraordinary amount of pressure. In order for the studios to remain healthy, we need to find ways to recapture that revenue."

To be perfectly honest, I haven’t been to a movie theater at all in 2010. Instead, my family makes full use of Netflix and Red Box. In my opinion, theaters need to think up some more creative ways to give movie-goers a better experience and value for the rising ticket prices. Until then, I’ll continue to wait and watch the films at home.

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