Studios Reportedly Scrapping Idea of Premium VOD Releases

Citing improvement to the theatrical experience, major Hollywood studios are reportedly backing [...]

By Russ Burlingame

Citing improvement to the theatrical experience, major Hollywood studios are reportedly backing off of plans to increase "premium video on demand" services and reduce the theatrical window.

That is according to Cinemark CEO Mark Zoradi, in a livestreamed talk at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco.

"The theater is not dead. It's gone through VHS, through DVD and through streaming and people want to get out of their house and want to be entertained," said the exec.

After a downturn in theatrical attendance in 2017, some studio executives began discussing whether moving to a more streaming-driven rollout was inevitable. After a rebound in 2018, those same executives have almost completely stopped discussing the strategy change, according to Zoradi.

"Release windows will always be discussed," Zoradi told investors according to The Hollywood Reporter, but formal talks on PVOD have ceased. "I'm not so concerned about it, because the studios and exhibition have a mutual interest in having studios create a great event. It's our job to create a great experience," he added.

What Zoradi characterizes as "better" Hollywood releases driving big revenue is more likely just a heavier emphasis on massive blockbusters like Black Panther and Avengers: Infinity War, both of which earned more than $1 billion last year. Smaller releases are getting shorter theatrical windows and a quicker turnaround to video on demand whether or not Cinemark is hearing it from studio executives.

For a lot of younger consumers, the eventual move toward video on demand overtaking the theatrical experience for the vast majority of movies feels like a foregone conclusion, but the industry -- not just exhibitors, but filmmakers who tend to be cinema purists -- are resisting the change.

Recently, Steven Spielberg made headlines by reportedly trying to block feature films developed by Netflix and other streaming video services from consideration for Academy Awards. He has since denied the claims.

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