It was announced today that the Federal Communications Commission approved a MPAA-led request to allow recently released films to be transmitted to U.S. households via a “secure high definition transmission line from their cable or satellite providers” prior to their DVD or Blu-ray release.
The decision by the FCC will essentially allow the movie studios to create another release window for films, one that comes between the theatrical release of a film and the DVD release, which usually occurs 90 days after a movie opens in theaters. What that new release window will look like has still not been determined but it’s likely consumers will be able to purchase a film for secure electronic delivery directly to their high definition television sets sometime after it begins its theatrical run. It’s sure to be less than the 90 days when a film hits the DVD shelves but could be as short as 45 days after a film debuts in theaters. (By the time a movie has been in theaters for 45 days it has earned 90% of its theatrical revenue.)
The action protects these films from piracy as explained by the MPAA’s President and Interim CEO Bob Pisano in a release, “This action is an important victory for consumers who will now have far greater access to see recent high definition movies in their homes. And it is a major step forward in the development of new business models by the motion picture industry to respond to growing consumer demand…We deeply appreciate the recognition by the FCC that recently released movies need special protection against content theft when they are distributed to home televisions.”
However, it could be a serious concern for theater owners who have been trying to preserve their 90 exclusive theatrical window for months. Says John Fithian, the president of the National Association of Theater Owners, “The FCC’s decision is not surprising. The theft is a serious problem. The issue of the theatrical release window, however, will be decided in the marketplace.”
Studio chains could start selling the films right away now that the secure line has been approved. However, it only works on cable boxes made within the last two years, along with satellite televisions and the newest playstations. Older cable boxes would have to be upgraded for the secure files.
I bet the movie houses will just love this ruling.
So, basically the films will be streamed with HD specs? 720p – 60fps? *Blergh*
I would rather watch the Bluray to be honest. Lossless sound, higher resolution and most important of all, freedom to watch it whenever I please.
This is a big yawn. If the studios really wanted to stifle piracy and generate more revenue, they would release films simultaneously across all channels. That would be a true “victory for the consumer”. Until then, I’ll continue to stay at home and keep my money in my pocket.
No, it wouldn’t be a victory for the consumer. Instead, much like the music industry, it would be another industry destroyed.
The theatrical release legitimizes a film. How many films have you elected to see that went “direct to video”? How many TV movies have you ever rented?
The more you reduce the theatrical window, the more likely it is that you kill the theatrical business, which has never been a great business for theatre owners anyway.
If you kill the theatrical business, what will happen is that movie budgets will drop like a stone. Not that big budgets guarantee a quality film, but the nature of the business will change because studios will no longer put the effort and money into pictures that are only made for the small screen. And in the end, consumers will lose.
The music industry destroyed itself by not embracing new business models and clinging to the status quo, which is exactly what the movie studios seem to be doing.
I would argue that it’s marketing budget that “legitimizes” mainstream films. This is unlikely to change if films were released simultaneously across all channels.
If you like the movie theater experience, great go see it in the theater. But the studios are missing a huge opportunity (and not maximizing their marketing investment) by not letting me view the movie from home.
I’ve been predicting this for years: the slow demise of the movie theater. Such a shame.
The sad thing is I know people who are otherwise law abiding who don’t see a problem illegally downloading pirated movies. I’ve argued with them but they think if it’s on a computer, it must be free. Of course, if the FCC ever offered a reward, I’d turn those dumbasses in quicker than a Jennifer Lopez movie fades from my memory.
The puzzle is that a generation who thinks they are so sophisticated about computers, technology and media actually don’t understand it at all if they think that stealing a download isn’t the same as walking into a retailer and stealing a physical package. It’s EXACTLY the same crime.
Illegal downloading (combined with legal downloading of singles as opposed to albums) has already pretty much killed the music business. Even including paid downloads, the business is shrinking so much each year, there will barely be a business left within five years. And as a result, there is very little quality music available.
Where is today’s new Dylan, Springsteen, Beatles, Stones, Aretha Franklin, etc? Not happening.
They will do the same thing to the theatrical business. You think the studios are going to continue to make $200 million movies if no one is paying for them?
I think a lot of people who illegally download movies or buy bootlegs on the corner would probably choose this alternative, and it could be a huge blow to piracy. The problem is, those people aren’t going to wait 45 days to be able to stream a movie they want to see. Cut that 45 days down to a week or less, and this idea could be revolutionary. However, as it’s currently laid out, I can’t imagine who the target audience is for this new streaming technique. People who illegally download and buy bootlegs aren’t going to wait six weeks, and people who legitimately pay to see movies aren’t going to wait either. The 45 day rule is a deal-breaker. I don’t understand what’s stopping studios from simply releasing new films and offering them for streaming simultaneously. The future is now.
I agree with this, but what’s to stop the illegal downloaders from continuing to illegally download, instead of paying for legal movies? I guess that point is moot anyway though.
To those worried about theaters, yeah, this would be a blow to them, but we don’t have cost-effective 3D tvs (yet), and home sound systems aren’t as good as the theater ones, so the tech-inclined will still go to the theaters.
The price of the legal downloads will also be a major factor–I can see it being something like the price of a DVD, if not more (to make up for the loss of 5 tickets per family). And with that, the revenue for the films won’t drop all that much, so the big movies can still have bigger budgets than direct-to-dvd ones. Theaters will be in trouble though.
This is the same argument studios first made about VHS and Beta. Now some movies make more on DVD then they do in theater.
The studios don’t currently make any money on my family of five because the cost is ridiculous, so we stay home.
OH WOW! YIPPEEE! GOOD FOR THEM!! This has to be the most pointless thing I ever heard. Its just faster VOD.
So I wonder if this will impact services like Netflix at all. I love being able to stream movies and tv shows through my X-Box without having to wait for the mail. Plus if I don’t make sure to have a movie sent back to them on a certain day, new releases get wait-listed for weeks which is very frustrating. The streaming service solves those problems, but the selection is very limited and newly released on dvd movies are very rarely available. Crossing fingers that this new ruling will affect Netflix for the better.
They probably slipped a lot of money under the table to the FCC people to allow this to happen. So instead of 5 people paying in a theater, one person will pay for the direct and movie revenues will drop through the floor.
I don’t see them charging standard payperview prices for this. I can see them charging $13-$20 for this… roughly the price of 2-3 tickets would cost.
That would only make sense