Chernin Sees HD on VOD3 Mar, 2006 By: Erik Gruenwedel
Fox is exploring ways to distribute content to the 1 million people who spent $25,000 building home network theaters in 2005, News Corp. president and COO Peter Chernin said.
“These are people who are desperate for our product,” Chernin said at the Bears Stearns conference in Palm Beach, Fla. “We believe there is an opportunity for the so-called next-generation, in-home distribution, which we think is going to be driven by high-def.”
Specifically, Chernin said News Corp. had approached cable companies and telcos about the prospect of high-priced, high-def “rental” for $25 to $30 a title 60 days after the theatrical release.
He said the opportunity to spend $25 and get King Kong or The Chronicles of Narnia: The Lion, the Witch and the Wardrobe in the home the same day would outweigh the premium over the price of going to the movies.
“We think there is a big new additive market for that, and we don't think it will cannibalize the existing theatrical or existing DVD markets,” he said.
He sees great opportunities for existing DVD businesses that make the transition to the next generation, including the opportunity to get “a couple bucks more marginal revenue from … library.”
“In terms of the windows, all of us are looking at them, and I think it is a positive,” Chernin said. “These are things that need adjustment.”