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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 Spuke on 6/24/2013 11:47:59 PM , Rating: 1
Look I respect Nolan, but not every franchise lends itself to his "dark edgy" style. Superman, in my opinion, is one of those. Superman is NOT Batman.
I can see your point. But MoS didn't come off as dark to me though.

But why does he feel that he cannot make an original story without plagiarizing from the stuff we know and love?
My biggest gripe about some of today's movies. I like how some flicks were remade to how they "should've" been in the first place (IMO) but, sh!t, can a nigga get a table dance? Can't one of these big dog producers come up with something original for once? The Matrix was a breath of fresh air. It really went where not many movies go (making people handing you the plot..some people hated it for that). Is that all we get in this century?

I just...just...argh!!! Fuck it, my blood pressure man.
LOL! I think I'm gonna pop in Matric Reloaded.

"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser

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