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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 new releases 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. 


Disney 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. 

Source: The Wall Street Journal



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By DiscoWade on 6/24/2013 8:40:03 PM , Rating: 2
Link please.

In any event, I just watched Amadeus over the weekend. While the movie was historically inaccurate, it did have a lot of Mozart's music. It was good music, but was it superior to, say, The Beatles or Elvis? That is a matter of opinion.

I will admit most of today's music is awful and unimaginative. If you notice, a lot of music today follows the same pattern: A-B-A-B-C-A where each letter is a different pattern; sometimes it is A-B-A-B-A-B-C-A. The 'B' in the pattern is the exact same lyrics and music and 'C' in the pattern is different than the rest of the song. And that autotune voice makes me want to stick a screwdriver in my ear. But just because the big media cannot see past the bottom line does not mean the skill is not there.

However, can you really say that Mozart or Beethoven are the pinnacle of music? And can you really say that Salieri and Tchaikovsky are better than John Williams? Which do you remember more? The Imperial March from Star Wars or Eine kleine Nachtmusik by Mozart? While I will admit the classical musicians had much skill, to say they are the best is up for opinion.

And movies. Casablanca is an excellent movie, I've seen it many times and it has some of my favorite quotes in a movie. But the way you talk, the blockbuster movies of that time are superior to Batman: The Dark Knight or the original, non George Lucas tampered Star Wars. Which do you remember more? "My precious" from Lord of the Rings or "I'm shocked, SHOCKED, to find gambling going on" from Casablanca?

The fact is special talent is rare no matter what the era and in today's world where the concern is about the money it is even harder for special talent to break through. The talent is still here, it just has more obstacles today.


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