Hollywood is planning to offer movies for online rental, two weeks after their cinema debut, according to a rumor posted by Bloomberg. Movie fans would have to pay between $25 and $50 to view the movie at home.
The information from Bloomberg comes from industry insiders who also state the matter isn’t settled yet. However, the head of Time Warner Inc.’s Warner Bros. unit has stated there are constructive talks about the plans. The Time Warner head calls the early online rental a ‘premium home-video offering’.
The price of the online rentals in the plan might be steep but it are based on the price of a pair of tickets at theaters in cities like New York and Los Angeles.
Especially the movie theaters are against the plans and because they are responsible for a major part of the movie studio’s revenue their voice has to be heard. In the plan, they would therefore be compensated for a possible loss in revenue.
It’s unknown how and where the movies will be offered, either through third party services like iTunes or through a service owned by the movie studios. It’s also unknown whether only U.S. citizens will be able to enjoy movies two weeks after their release or that it will be available for users around the world.