Prima Cinema to Offer Films Same Day as Theatrical Release - for $20,500

[cheez avenger]

http://movies.yahoo.com/news/usmovie...-release-20500

Cable giant Comcast and others have in the past suggested that one day, movies will come into living rooms day-and-date with theatrical releases.

Start-up Prima Cinema is looking to make that happen starting in late 2011 - for a one-time fee of $20,000 for its digital delivery system and $500 per film, the Wall Street Journal reported Wednesday.

The news comes as studios have looked to make select films available in a new premium VOD window - between theatrical and DVD releases - starting next year for $20-$30 a pop.

Due to the high cost of the planned Prima service, some Hollywood executives wonder if the service will reach more than a few thousand users, the Journal said. But Prima hopes to install its system in 250,000 homes within five years, and some argue it could carve out a super-premium niche.

Prima has met with all major and some smaller, independent studios and expects that at least some will sign on, according to the Journal.

"While this is a niche market, there is a chance for significant upside," Adam Fogelson, chairman of Universal Pictures, which is an investor in Prima, told the Journal.

"We are trying to create new revenue streams for studios and new viewing opportunities for moviegoers," Prima founder and CEO Jason Pang said.

NATO president John Fithian said film exhibitors are opposed to new windows that could cut into movie going, but said his organization will react "on an individual company basis." He highlighted the risk of piracy that the Prima service could cause, saying it "risks millions to make pennies."

[Kosty]

Well if Wolf Cinema and Runco and high end CEDIA folks can make money, I'm sure someone would pay fro some installations. But I'm not sure why studios would support this initiative.

[PSound]

$500 per film seems low, unless studios are also getting a kick-back on the hardware.

[Kosty]

$500 per film seems low, unless studios are also getting a kick-back on the hardware.

I agree. Why would the studios agree to this?

They only would get so much revenue from the number of users and they risk pissing off the theater owners even more and make negotiations on windows even harder down the road and they have to have a non insignificant issue with losing control of some new release content thats far worse than a guy with a camcorder siting in a cinema making a copy for bootleg piracy DVDs.

Universal must thing the DRM is airtight, but it seems that there is another angle not being discussed here that would make it make more sense.

[Philnerd]

They'd have to uniquely watermark the films for each installation to avoid very high quality camcorder dupes from hitting the streets immediately. Of course, for that money, maybe each site will get its own security guard and usher.

[luclin999]

Good news for the Bill Gates crowd (I guess), not so much for the picket fence types though.

[Kosty]

They'd have to uniquely watermark the films for each installation to avoid very high quality camcorder dupes from hitting the streets immediately. Of course, for that money, maybe each site will get its own security guard and usher.

I did not even think of that as an issue. Just like Oscar screeners now have to do that as those DVDs were finding there way to pirates before home video releases were available.

[Ace_of_Sevens]

I'm not note sure how they plan on getting a quarter million customers at that price. Maybe if it were worldwide, but the article seemed to imply this was just for the U.S. Sure, there a probably a million or two households that could afford it, but onyla subset of those are home theater enthusiasts and I'm thinking a good number of enthusiasts would prefer to just go to the theater if they have to see a new release movie and pay 95% less to buy a movie on blu-ray a few months later. I'm not clear on how long this $500 will get you the movie.