Have you ever gone to see a movie at the theater, bought a DVD at the store, or downloaded a movie on iTunes? Considering my college-aged audience, you’ve probably done all three. These methods of film distribution are the way we get our hands on movies.
Many consumers are somewhat aware of how movies are released. A film comes to movie theaters. It is then offered on DVD and Blu-Ray. Then, it arrives on PPV (pay-per-view) and VOD (video-on-demand). Finally, the film is premiered for “free” on network television channels like FX or TNT. This method of rolling out films is the standard in the industry today. However, with increased piracy and technology, this system will have to change.
Before home video, movie watchers had the sole option of going to the local movie house to see films. Simply put, it was the only way to watch films. If you missed a movie, you were out of luck. Theaters began opening to play older films, but quickly lost their customers with the huge popularity of the videotape (and the ability to buy movies for home viewing).
Just as the videotape changed consumers’ options (and thus consumer behavior), the advent of internet/digital technology is forcing the entertainment industry to reevaluate the way movies are made available to the public. While we don’t exactly know what this change will be, one possibility is the concept of day and date film releasing.
What is day and date? Well, it refers to the release of a movie in multiple media formats at the same time. Basically, a film would come out in theaters, on DVD, pay-per-view, video-on-demand, and in other digital formats (as well as being available for rent).
Why would this day and date release strategy be effective? The concept revolves around economies of scale (savings achieved in the cost of production by larger enterprises because the cost of initial investment can be defrayed across a greater number of producing units). In laymen’s terms, movies could potentially have a greater return because they would be more readily available to consumers on the date of release.
Under this new system, people who traditionally don’t go to the cinema would have access to the film at the same time as those who do. For example, my grandmother (who avoids theaters due to the hassle associated with getting to the theater, buying the ticket/concessions, and getting to your seat) could buy the movie on her computer or watch it on her television. This is what proponents of day and date expect consumers to do.
So, the question is, “Will the day and date release strategy be the death of movie theaters?” It’s hard to say.
NATO (not the North Atlantic Treaty Organization, but the National Association of Theater Owners), which accounts for the operation of over 26,000 motion picture screens, is aware of that possibility and actively opposes the practice of day and date releases. Although NATO opposes the transition, high profile entertainment professionals and corporations like director Steven Soderbergh and 2929 Entertainment support it.
When you ask consumers how they feel, the response is mixed. Some people value the movie-going experience and will continue filling theaters despite the rising cost of movie tickets and concessions (the national average of a movie ticket is $7.08).
Others invest in home entertainment systems or home theaters which take advantage of surround sound and high definition technology and avoid the theater altogether.
Only time will tell who wins out. Consumer habits will ultimately determine where the industry goes.
Brent Paxton is a junior international relations and political science double major. He can be reached for comment at [email protected].
