Paramount Pictures has taken the first step to what could
eventually become an unprecedented event in the film industry. And this has
been done through out a new distribution strategy leaded by Paramount’s CEO
Brad Grey. The business model involves two upcoming films from the studio.
Paranormal Activity: The Ghost Dimension (October 23) and Scouts Guide To TheZombie Apocalypse (October 30).
This new approach has brought together different points of
view as well as benefits to three parties: the film studio, the exhibitors and
the consumers. The idea basically consists in releasing both films theatrically
as it is usually done. Eventually, 17 days after each film has been brought down
to 300 domestic theaters they will be automatically released on several home
video platforms in order to optimize the viewing spaces for both movies and
keeping track of other revenue sources while the films are still showing in
less theaters. AMC and Cineplex will still receive an undisclosed percentage of
Paramount’s digital revenues for the period ending 90 days after the films were
first released. The amount should be proportional to the gross share of the
theatrical market.
From Grey’s point of view this clearly represents a new approach that will certainly benefit all parts involved. “Movie-lovers wantus to respond and meet their desires, exhibitors want to keep their businessesstrong. Filmmakers want us to implement new ideas on the theatrical experienceand optimize the consumer access to their projects. Our hope and intent is thatthis initiative offers a degree of innovation that benefits all parties”.
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| Paramount Pictures CEO Brad Grey. |
Paramount Worldwide Distribution and Marketing President
Megan Colligan has also stated that this new method could allow them to fight
back in reducing the piracy window that films create once they are out on
theaters. “This strategy is modular and allows us to engage with consumersthroughout the lifecycle of our films to meet their needs and reduce the piracywindow.”
In the other hand AMC Theaters CEO Gerry Lopez recently declared that this new deal with Paramount, “Aligns the interests of consumer,filmmakers and exhibitors to maximize the theatrical experience first and then enable legitimate digital access”.
And last but not least, Patrick Corcoran, spokesman from The National Association of Theatre Owners said, “ For severalyears we’ve been asking studios to work with exhibitors on new models that growthe pie. We’re glad Paramount has reached out to theaters.”
It seems like this new business model could be a game changer move in the film industry. The idea still has to be tested and the revenue will definitely determine whether or not the new model brings something new to the table. There are a couple of things I’m curious about this new approach that the studio is having. How did they determine “300” as the minimum number of screens to finally release the films on digital platforms? Could this incentivize audiences to attend more to the theaters and appreciate a little more the theatrical experience that they offer? Is this the end of theatrical releases? Could this mean that the VOD market has taken one step closer to crushing the theaters? Will movie studios continue to do this even with bigger films, such as blockbusters? Which other studios will join the party?
In the end a lot of questions can be asked but we will get a better answer by October of this year when this test finally takes place with the release of both films. At the end of the day the film industry is also a business, and even though this could represent a new beginning for other revenue strategies and sources for studios, this could eventually lead to the end of theaters or perhaps bring back the experience and excitement that audiences have lost in the last few years to go and see movies at the theater (specially with the great quality that TV is producing nowadays), instead of waiting for them to be released on stores or digital platforms.
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