Report: Studios, Cable Mull Same Day DVD, VOD Release4 Jan, 2006 By: Erik Gruenwedel
Several studios and cable companies are reportedly discussing plans to release movies simultaneously on DVD and video-on-demand in select markets this year.
The Walt Disney Co., Universal Pictures, Warner Bros., 20th Century Fox and Comcast Corp., among others, are said to be considering the option, according to a report in The Wall Street Journal.
Studios are actively seeking ways to capture an increasingly mobile consumer that contributed to a reported 5.2 percent decline in box office revenue in 2005 and softening DVD market.
Apple Computer's success with iPod MP3 player helped legitimize music downloads as a lucrative revenue stream. The subsequent video iPod and content deals with Disney and NBC Universal generated more than 1 million video downloads shortly after the device's launch.
That said, studios don't want to cannibalize lucrative DVD sales for incremental VOD revenue, which reportedly generates about $4 per title compared to $20 for DVD, according to the report.