Disney, Sony Testing Video On Demand Model for Movies Still in Theaters
June 24, 2013 12:49 PM
The testing is only taking place in South Korea
Don't feel like driving out to the theater to catch the latest flick? You may not have to if a new video on demand (VOD) model proves successful.
Walt Disney Co. and Sony Pictures Entertainment have started testing a new business model in South Korea, where movies still in theaters are also made available via VOD. The model, called "super-premium VOD," allows South Korean citizens to rent the new films at home from a cable, satellite or Internet provider.
Why South Korea? Mainly because U.S. cinema companies like AMC Entertainment Holdings Inc. and Regal Entertainment Group require a 90-day window after a movie is released in theaters before it can go to home entertainment.
The new model by Disney and Sony brings
to the home only 3-4 weeks after they debut in theaters.
South Korea is an ideal location to launch the VOD testing because the country already has many local productions offering similar VOD options.
In addition, DVD sales/rentals in South Korea dwindled to only $30.5 million in 2012, and even shut down DVD sales offices. This means that studios can test VOD models without having to worry about undercutting sales from DVDs or rentals.
and Sony haven't wasted any time. Disney's "Wreck-it Ralph" came out five weeks after it launched in theaters while "Brave" was released after only four weeks.
As far as Sony goes, "Django Unchained" was available just three weeks after debuting in theaters.
The average pricing for super-premium VOD is about $9 USD, compared with about $3.50 for normal rentals in South Korea.
According to Chun Yoon-soo, director of business development for Korea's largest VOD provider HomeChoice, total revenue from the super-premium VOD films in South Korea was 30 percent higher than for "comparable films."
However, those in the movie industry worry that the model's testing results in South Korea may not be relevant to the U.S. since VOD is bigger in South Korea and piracy is widespread.
Other Hollywood studios may launch similar services depending on the success of Disney and Sony's South Korean venture.
The Wall Street Journal
"This is from the DailyTech.com. It's a science website." -- Rush Limbaugh
Disney Purchases Lucasfilm Ltd. for $4.05 Billion USD, Episode VII Set for 2015 Release
October 30, 2012, 7:47 PM
Sony UMD Movie Titles on Life Support
March 30, 2006, 2:24 PM
Amazon Airborne Fulfillment Center – Your Merchandise Drop-Shipped from the Clouds
December 29, 2016, 5:00 AM
Amazon is experimenting with a new kind of grocery stores, Amazon Go
December 8, 2016, 5:00 AM
Google has developed Deep Learning Algorithm to detect Diabetic Eye Disease
December 4, 2016, 5:00 AM
Google plans ultra-fast wireless Internet for Research Triangle Park, N.C.
August 12, 2016, 6:30 AM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Most Popular Articles
OPPO R9 – The Smartphone with Excellent Camera and Long Battery Life
January 12, 2017, 12:01 AM
Are you in the market for a private antenna?
January 11, 2017, 12:01 AM
Comparison: Xiaomi Mi Mix Vs. HTC U Ultra
January 14, 2017, 12:10 AM
Super Hi- Vision Will Amaze the World
January 16, 2017, 9:53 AM
Huawei P10 Smartphone – Coming this Spring
January 11, 2017, 12:01 AM
Latest Blog Posts
Jan 17, 2017, 12:16 AM
News of the Day
Jan 16, 2017, 12:10 PM
News and Technology Advancement
Jan 16, 2017, 7:58 AM
Jan 15, 2017, 12:32 AM
Here is Some News
Jan 14, 2017, 12:39 AM
News: Improved and New products
Jan 13, 2017, 12:01 AM
News around the world
Jan 12, 2017, 12:01 AM
Rumors and Announcements
Jan 11, 2017, 12:01 AM
This year CES and ridiculous gadgets
Jan 10, 2017, 12:01 AM
Nokia Android phone spurns the west.
Jan 9, 2017, 12:08 AM
New at CES 2017 - Changhong 8K Super Slim TV 65ZHQ3R
Jan 8, 2017, 1:07 AM
Debuted at CES 2017 - Vuzix Blade 3000 Smart Sunglasses
Jan 8, 2017, 12:39 AM
Some news of Day
Jan 7, 2017, 12:01 AM
News 2017 CES
Jan 6, 2017, 12:01 AM
Here is the Latest News in Tech
Jan 5, 2017, 1:47 AM
AI Beats World’s Best at Chinese board game “Go”
Jan 4, 2017, 11:21 AM
Las Vegas 2017 CES
Jan 3, 2017, 12:01 AM
News of Jan 2nd 2017
Jan 2, 2017, 4:40 AM
Wishing you all, the New Year brings the light of hope, joy, success, and Happy, Happy New Year.
Jan 1, 2017, 1:48 AM
More Blog Posts
Copyright 2017 DailyTech LLC. -
Terms, Conditions & Privacy Information