With Domestic BO Poised to Hit $11.4B, Industry Wants a ‘Revolution’

Labor News, Industry News

Audience seen at a return to J.K. Rowling's Wizarding World the global fan event celebrating the new film "FANTASTIC BEASTS AND WHERE TO FIND THEM," at TCL Chinese Theatre on Thursday, October 13, 2016, in Los Angeles. (Photo by Eric Charbonneau/Invision for Warner Brothers/AP Images)

Reprinted from Deadline Hollywood by  on December 29, 2016.

With 2016 poised to hit $11.4 billion, the domestic theatrical marketplace is the largest we’ve ever seen it, with estimated admissions currently even with last year’s 1.32B. Yet despite this all-time high, distributors and exhibitors want change.

After Sean Parker and Prem Akkaraju’s day-and-date Screening Room concept created ire among exhibitors and some filmmakers back in March, studios are now opening up to the idea of a premium VOD window. How’s that? Some majors — particularly those owned by cable companies, such as Warner Brothers and Universal — believe there’s still money to be recouped on a film title. Their reasoning stems from the fact that the top 20 films represented close to 50% of the 2016 domestic B.O. Now, more than ever, mid-level movies are burning faster in the theatrical marketplace, and a premium VOD window would keep such titles alive before hitting a standard VOD/DVD cycle.That means more money, and potentially lower marketing costs.

With such big titles as Star Wars: Episode VIII, Justice League, and Guardians Of The Galaxy Vol. 2 on the calendar, sources tell Deadline they don’t expect significant movement in regard to premium VOD in the new year. However, a less contentious attitude with exhibitors at this year’s CinemaCon should emerge.

Deadline Hollywood 12/29

About Jeffrey Burman 2743 Articles
Jeff Burman represents assistant editors on the Guild’s Board of Directors. He can be reached at jeffrey.s.burman.57@gmail.com.

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