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A Paramount Decision

17 Jul, 2015 By: Stephanie Prange

Paramount Pictures has brought together two segments of the entertainment industry that are traditionally at odds: theatrical and home entertainment distribution. Cinema companies have for years bemoaned the shrinking window between theatrical release and home entertainment distribution, whether via video-on-demand, streaming or disc. Each time a studio has tried to give consumers access to theatrical releases sooner than usual, the theaters have circled the wagons and protested.

While previously at odds, these two businesses are now forming an “Odd Couple,” as our July 20 cover story notes, married by digital revenue. Paramount’s Paranormal Activity: The Ghost Dimension and Scouts Guide to the Zombie Apocalypse will be given a wide release this fall with the digital home entertainment purchase available 17 days after the film dips below 300 domestic theaters, meaning consumers could have digital access to titles early — with theaters, for the first time, sharing in the digital revenue.

Looming in the background is the threat from streaming services such as Amazon Prime and Netflix. Both services are looking to slam the theatrical-to-digital window shut and offer feature films to be streamed without the usual cinema exhibition period. There’s nothing like a common enemy to unite former foes and force a shotgun wedding.

I don’t think, by the way, that the theatrical and home entertainment revenues are a zero sum game. I’ve been to many theatrical showings in which audience members leave the theater musing about when they will be able to buy the film they have just seen on disc or digital. Sometimes, there is no better time to sell a film on home entertainment than just after consumers have seen it in theaters. Perhaps marketing home entertainment in the theater lobby is the next step.

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