The L.A. Times has a very interesting article about how the big studios are finally dealing with streaming as a reality. But the way they are dealing with it a perfect example of where fast moving, able to pivot on a dime indie companies are able to take advantage of the show moving nature of giant corporations who are resistant to change…
Here’s the studio’s idea…
One thing is certain: People who like inexpensive movie rentals are going to have to get used to waiting longer than they do now. Studios are beginning to use the Internet to slice up the market so that people who are willing to buy a movie or pay more to rent it can get it sooner.
Four studios have already experimented with so-called premium video on demand, in which consumers pay $30 to rent a movie only two months after it debuts in theaters. Recently Sony Pictures began selling some movies online two weeks before they become available on DVD.
At the same time, some studios that make Netflix and kiosk rental company Redbox wait until 28 days after a DVD goes on sale before they can offer it for rent want to lengthen that delay. They believe such a move will encourage consumers to pay more to buy or rent a movie digitally.
By next year, consumers may have to wait two months or longer after a movie goes on sale before they can get it in a Redbox kiosk or Netflix envelope. Those who want to stream films online for a flat monthly fee from Netflix, Amazon or Blockbuster will in many cases wait years until those titles have completed their runs on cable networks like HBO.
Apparently, the studios think a significant number of people will jump on these $30 rentals as opposed to just renting and watching whatever happens to be on NetFlix or Redbox right now. They imagine throngs of people so unwilling to wait to see cinematic masterpieces like Abduction two months before their overly patient neighbors, that they won’t watch the bazillion other films that they could watch right now.
How long will it take them to figure out how stupid this is?
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Wow. Hollywood really does think they’re that special, huh? Seriously, how many movies come out each year that you HAVE to own immediately? Oh, that’s right, none. I know we’re in a recession and all, but wouldn’t you rather pay a lot more for entertainment?
Hell, netflix has so many movies and tv shows, I just cancelled my cable.