THE BROKEN WINDOW THEORY PART TWO
Below we linked to a Hollywood Reporter article about the momentum in the industry towards collapsing the traditional theatrical/home video/pay television windows that have governed when new motion pictures are released to the public. Today on his blog, Mark Cuban, whose 2929 Productions and HDNet films are at the forefront of this experimental distribution, has a cogent explanation of his strategy. Make sure to read the postings from readers below his blog as well. Hollywood may not like it, but it’s clear that he is on to something.
From the piece:
“Why not price a DVD or the PPV at a significant premium for day and date delivery? It’s $29.95 retail if you want to wait 4 to 6 months. If you want to see it the same day its released in theaters, it’s $39.95 retail. Plus, if we are smart, we will provide a $10 or $15 mail-in rebate against that price if you provide a ticketstub for the movie and a receipt for the PPV or DVD. Not only does it expand the number of customers who can and will see the movie on opening night, but more importantly, it enhances the perceived value of going to the theater. 10 bucks to get out of the house, 40 bucks to stay home. Of course this won’t make everyone happy. Some people will still think that both options are too expensive. No solution will make everyone happy, but it will expand the number of customers and the revenue base upon release.”