Is Hollywood trying to screw the cinema industry? It just might, if the latest reports are anything to go by. Still, it's a plan that's likely to fail.
The Wall Street Journal reports that Hollywood studios and one of America's largest cable operators, Time Warner Cable, are talking about sending movies to people's living-room TVs just weeks after films hit the multiplex. If they pull it off, it will destroy many cinema operators not to mention the film distribution business.
Hollywood knows it's likely to lose money because the ground is shifting. True, box office receipts are up 9% from 2009 to $3.4 billion but as the Los Angeles Times reports, that's an illusion. It's not like more people are going to the movies, that's virtually flat. The increase is because there are surcharges of more than $3 on 3-D movies like "Avatar" and "Alice in Wonderland,". The surcharge is what's driving up ticket prices.
All this sounds a bit desperate and it's hard to see how this latest scheme would catch on. The Wall Street Journal reports that consumers will be able to "watch a movie at home just 30 days after its theatrical release-far earlier than the usual four months-for roughly $20 to $30 a pop."
This is where the plan becomes ridiculous. Would you really be willing to pay $30 to watch a movie in your lounge room? It just shows how out of touch the studios are.
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