Theater Owners Enlist James Cameron, Michael Bay, and 21 More in War Against Early VOD
A week after backpedaling from the rumored threat that they'd pull major summer blockbusters (Harry Potter? The Hangover II? NO!!) from theaters to punish studios for committing to early video on demand distribution agreements, the National Association of Theater Owners (NATO) is taking a different tack. Meet NATOs new army of foot soldiers in the debate over VOD: 23 of Hollywood's biggest names, who signed a NATO-backed open letter pleading for the protection of "the movie-going experience."
The letter in full:
AN OPEN LETTER FROM THE CREATIVE COMMUNITY ON PROTECTING THE MOVIE-GOING EXPERIENCE
We are the artists and business professionals who help make the movie business great. We produce and direct movies. We work on the business deals that help get movies made. At the end of the day, we are also simply big movie fans.
Lately, there's been a lot of talk by leaders at some major studios and cable companies about early-to-the-home "premium video-on-demand." In this proposed distribution model, new movies can be shown in homes while these same films are still in their theatrical run.
In this scenario, those who own televisions with an HDMI input would be able to order a film through their cable system or an Internet provider as a digital rental. Terms and timing have yet to be made concrete, but there has been talk of windows of 60 days after theatrical release at a price of $30.
Currently, the average theatrical release window is over four months (132 days). The theatrical release window model has worked for years for everyone in the movie business. Current theatrical windows protect the exclusivity of new films showing in state-of-the-art theaters bolstered by the latest in digital projection, digital sound, and stadium seating.
As a crucial part of a business that last year grossed close to $32 billion in worldwide theatrical ticket sales, we in the creative community feel that now is the time for studios and cable companies to acknowledge that a release pattern for premium video-on-demand that invades the current theatrical window could irrevocably harm the financial model of our film industry.
Major studios are struggling to replace the revenue lost by the declining value of DVD transactions. Low-cost rentals and subscriptions are undermining higher priced DVD sales and rentals. But the problem of declining revenue in home video will not be solved by importing into the theatrical window a distribution model that cannibalizes theatrical ticket sales.
Make no mistake: History has shown that price points cannot be maintained in the home video window. What sells for $30-a-viewing today could be blown out for $9.99 within a few years. If wiser heads do not prevail, the cannibalization of theatrical revenue in favor of a faulty, premature home video window could lead to the loss of hundreds of millions of dollars in annual revenue. Some theaters will close. The competition for those screens that remain will become that much more intense, foreclosing all but the most commercial movies from theatrical release. Specialty films whose success depends on platform releases that slowly build in awareness would be severely threatened under this new model. Careers that are built on the risks that can be taken with lower budget films may never have the chance to blossom under this cut-throat new model.
Further, releasing a pristine, digital copy of new movies early to the home will only increase the piracy problem--not solve it.
As leaders in the creative community, we ask for a seat at the table. We want to hear the studios' plans for how this new distribution model will affect the future of the industry that we love.
And until that happens, we ask that our studio partners do not rashly undermine the current - and successful - system of releasing films in a sequential distribution window that encourages movie lovers to see films in the optimum, and most profitable, exhibition arena: the movie theaters of America.
We encourage our colleagues in the creative community to join with us by calling or emailing NATO at 202-962-0054 or nato@natodc.com.
Sincerely,
Michael Bay
Kathryn Bigelow
James Cameron
Guillermo del Toro
Roland Emmerich
Antoine Fuqua
Todd Garner
Lawrence Gordon
Stephen Gyllenhaal
Gale Anne Hurd
Peter Jackson
Karyn Kusama
Jon Landau
Shawn Levy
Michael Mann
Bill Mechanic
Jamie Patricof
Todd Phillips
Brett Ratner
Robert Rodriguez
Adam Shankman
Gore Verbinski
Robert Zemeckis
Paid for by the National Association of Theatre Owners
It's a smart move by NATO, appealing both to the studios themselves and directly to the moviegoer through the artists (and, let's not forget, businesspeople) who make the product that drive the industry. The letter is a reminder that creatives have major financial stakes in this, too -- and that early VOD does run the risk of devaluing price points over time (that $30 per-stream cost can't possibly fly for long) while setting a precedent for cutting theatrical windows down considerably. Plus, in an increasingly digital world where audiences consume media on handheld devices and laptops and iPads, it would be a shame if the new model led to the closing of theaters and the diminishing of proper film exhibition.
But there's also an end-of-the-world quality to the argument. For example: Will shorter VOD windows hurt indie filmmakers, or increase their reach into cities where small films never even make it in limited theatrical release? Regardless, it seems right to give the filmmakers a "seat at the table" in discussions about major shifts that will irrevocably change how their product is disseminated -- and, by extension, how their livelihoods may benefit or suffer.
More as the story develops...
[via Movie City News]
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A LETTER FROM A MEMBER OF THE GROUP PAYING THE OVERPRICED FEES ASSOCIATED WITH MOVIE THEATERS TO THE CREATIVE COMMUNITY TRYING TO "PROTECT THE MOVIE-GOING EXPERIENCE"
We are the fans that ultimately pay the artists and business professionals who help make the movie business great. We pay extraordinary fees to allow you to produce and direct movies. We work day and night to be able to afford to pay hundreds to thousands of percentage of markup points on popcorn and soda so that we may be permitted to walk upon sticky, gross aisles in order to sit upon an unsanitary, uncomfortable seat behind an oversized person with an even more oversized hairdo that obstructs the screen, wedged in side by side in a room smelling of pee, spilled coke, candy and whatever else, along with dozens of other coughing, diseased, loud and rude people.
We do this not because we want to, but because it is the only way that we may see the show that more often than not, will ultimately prove to be not worth the time, trouble or expense.
At the end of the day, we are also simply big movie fans. Unfortunately, maintaining such a status requires that we endure such disgraces to our dignity and health.
Lately, there’s been a lot of talk by leaders at some major studios and cable companies about early-to-the-home “premium video-on-demand.” In this proposed distribution model, new movies can be shown in homes while these same films are still in their theatrical run.
I am thrilled with this new model, and it will undoubtedly cause me to watch more new releases sooner than I otherwise would. Even though I want to watch the latest movies upon release, I rarely do so anymore. There is just too much media out there to justify the cost, expense, and inconvenience associated with going to a movie theater. My 73" TV screen is more than adequate, my stereo system is of better quality, (and can be adjusted to make my viewing experience more comfortable rather than causing me hearing loss upon every explosion), I can enjoy healthy snacks and beverages of my own choosing without paying 100x their real value, and I can pause the movie in order to go to the bathroom rather than risk my bladder exploding. I can do all the above without driving 20 miles away and having to listen to obnoxious other "fans" screaming, talking, and sneezing all around me. I can do it at my own schedule, rather than at some arbitrary starting time that always seems to be about 15 minutes ago.
Hell, I can even do it in the nude if it suits me.
Thank you for this new model. I am far more likely to pay the premium associated with watching a first release movie, and I will be far happier before, during and after the film as a result. The environment will also benefit as millions of viewers aren't forced to drive millions of unnecessary miles back and forth. I will save about an hour a movie just in traveling time, and my health will improve by not having to go out into a snow storm only to be boxed up with a couple hundred random strangers.
Thank you for the effort. Until the improved model becomes widespread, I will simply fill my time with the current new releases. New DVD and streaming releases that is. I can wait.
That, sir, is brilliant.
THE FOLLOWING IS A COMMENTARY MADE ON BEHALF OF A SMALL GROUP OF TRUE / LIFE-LONG FILM AFICIONADO'S :
I speak on behalf of a small 'clique' of local film buffs who have known one another for quite some time, and, who often times get together either to watch film and/or simply to talk about film...including all aspects of the film making process. Our age ranges from mid-twenties, to late fourties / early fifties and is about equal in terms of male to female. What I can say is this : NONE of actually 'go to the movies' anymore, or very rarely so. Rather, ALL of us wait until release on Blue Ray / DVD. The reasons are many, but include :
1. Being able to share the cost of viewing / AVOIDING the often times irritating and unduly expensive process of going to an actual theater; detail : it used to be far more enjoyable to go to the theater than it is now. Now, not only is the cost out of wack with the value of the dollar, but in addition, old-style theaters are becoming a thing of the past / harder to find, as new theaters are being placed inside of, or directly connected to 'shopping malls', complete with parking fees, fees which the so called 'validation stamps' seem NOT to fully cover (how convenient). Not to mention the fact that the NEWEST theaters are such to make it unavoidable that you should be FORCED to snake your way through the rather repugnant atmosphere of a shopping mall in order to access the theaters entrance. Very very annoying.
2. Special features can be watched right after the movie experience when the movie viewed at home, and in addition, I have yet to EVER go entirely through a single movie without 'missing' some part of the dialogue, thereafter wondering what was said / what happened etc. When viewing the Art-form at home, this is entirely avoided.
3. Gas prices / cost of living are making it more and more ESSENTIAL for AVERAGE INCOME PEOPLE to do ALL THEY CAN to 'conserve' what little income they have, in order to afford ANY amount of pure entertainment; ....as in....ANY.
To the above comments, consider the following, keeping in mind that 'I' am well aware of the fact that I may or may not be speaking on behalf of people who my small group represents (demographically) :
Actors are already BY FAR---FAR overpaid for who they are and what they 'do'. The 'merit' of their life-existence borders on meager, and yet, for instance, they are paid FAR more than human beings who give responsibility to 'educate' our young. Quite embarrassing to say the least. I myself am a professional / full time 'Artist' (oil-painter, sculptor, designer, wood-worker), and yet, I have all I can do to afford basic existence in an economy which now greatly favors and ultimately caters to the economic elite.
Those in my group are people who adore watching film, and most of us actually spend a great deal of time following projects from pre-visualization and pre-production, right on up to 'release'. NONE of us make more than $60 or $70,000 / year. And a few of us make LESS than $30g / year. Regardless, ALL of us have no choice but to do all we can to watch our money to the penny. And part of giving up going to the theater has to do with money....or lack there of....alas....despite working full time....and some.
It used to be a truly enjoyable experience to go to the movies, but this was at a time when theaters were truly theaters, instead of being mere extensions of shopping malls / parking scams. Also, the cost of a ticket used to be a lot more 'balanced' in relation to income. This is no longer the case.
Also, I don't know if its me getting old, or, if people in general are mutating into 'low class' degenerates, but to me, lately, if ever I DO, per say, 'go to the movies', the theater always seems to have far too many irritating, obnoxious, low class people in attendance, INCLUDING people taking 'babies' to see an R rated film; (how offensive and irresponsible to ALL....including the infant itself). Not too long ago, the theater experience seemed to be FAR BETTER than it is today.
As far as I am concerned, ANYTHING that will reduce the cost of seeing film, at the same time as making the experience of film MORE CONVENIENT and EFFICIENT to the 'average' person [economically speaking], is definitively positive.
Ultimately, what it will come down to, is that 'actors' AS WELL as producers, will all have to eventually get used to making LESS MONEY like the rest of us. As it stands now, 'reality' is so horribly imbalanced in terms of economic position, as to find many many people, SMART people, GOOD people, more and more 'unable' to afford the most basic forms of 'entertainment'. When it comes to the point where only the economic-elite can afford to go to the movies, what does that say about where we are headed...??? I mean, a $15. ticket for 3-d is purely selfish, stupid, and grossly off-putting to many many people.
Perhaps, in time, movies will eventually be made more effectively /efficiently via no-name independent's......and released online by independent film makers via some type of 'honor system' via paypal etc. As it stands now, I think it all comes down to greed and egomania. As technology becomes as such to allow someone like myself or my 'group' to make a film of high quality via the aid of affordable PC hardware / internet, perhaps then we will begin to see something happen wherein all there overpaid actors and producers can be completely bypassed altogether. I guess we'll have to wait an see...
Until then, I indeed DO HOPE that the industry continues to push in the direction of INSTANT release on BLUERAY / DVD.....bypassing the theater altogether. In fact, I'd bet that THIS is the ACTUAL FUTURE of film. ....It's only a matter of time I'd say.
Anything that stands to expedite 'instant release' on DVD, would be GREAT for all of us 'average Joe's'. Not so good for the elite, of course, but who cares about them and all their multi-million dollar troubles.... Truly.