17 Days

Here’s an interesting article from 10 months back, about an alternative movie distribution model.

A movie will come out and you will have 17 days, that’s exactly three weekends, which is 95% of the revenue for 98% of movies. On the 18th day, these movies will be available everywhere ubiquitously and you will pay for the size.

I agree with movies (or content) being made available everywhere ubiquitously. But Jeffrey Katzenberg goes on to say that consumers should be charged by size of the movie: “A movie screen will be $15. A 75” TV will be $4.00. A smartphone will be $1.99.” I’m not sure I agree with that pricing because somewhere in between that range would be piracy, which costs $0.00 and comes in any size you want.

Still, it’s encouraging to think that some people in old Hollywood are finally coming to terms with how media distribution needs to change in light of new technology enabling more distribution options. Maybe we’ll get better access to content sooner than we think.

And according to Katzenberg, this scenario will play out 10 years from now.

Oh. Maybe not.

17 Days

2 thoughts on “17 Days

  1. Ben says:

    The “95% of revenue for 98% of movies” metric might be true currently, but if the movie studios move to this “18 day model”, I bet that would skew sharply downward. More people would hold off on watching in the theater to watch it at home. The trick for the movie studios to keep things profitable would be to balance the lag time and the price of the downloaded/streamed movie verses the price of the movie viewed in the theater, keeping in mind that if they increase the price of a downloaded/streamed movie too much, piracy would be a concern (as it is today). But hey, maybe piracy doesn’t really matter… Movie studios make a ton today, right?

  2. keongzai says:

    Yeah you made a great point. The price I would pay on Day 18 shouldn’t be too far from Day 1 in theatres.

    At the same time, the movie theatre experience is something that is hard to replicate at home, especially with iMax and *gasp* 3D. Conversely, there are customers who prefer to watch a movie at home, i.e. Parents with very young children.

    I do think the current gap between cinema and home video is too long though. Very often, I would miss it in theatres and still not catch it 3 months later because I’ve lost interest by then.

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