Movie studios have been toying with the idea of offering digital rentals of new films just weeks after they hit theaters. Cinema chains have obviously objected to these plans but the studios are not shelving them just yet. Apple is said to be one of the major companies that studios like Warner Bros. and Universal Pictures are in talks with on ways to move ahead on this without theater chains.
Bloomberg reports, citing people familiar with the matter, that even though Apple and the studios have been negotiating on this for months, they have been unable to reach a mutually beneficial way to create a premium movie-download project that costs between $30 to $50.
The leading Hollywood movie studios, with the exception of Disney, are reportedly willing to launch a new digital rental product to counter the declining DVD sales. Proposals under review include splitting revenue from the new premium video on demand product with the cinema chains if they sign off on the concept.
Cinema chains are said to be pushing for a long-term commitment of up to ten years in exchange for an agreement to the revenue split proposal but as per the people cited in the report, the studios have rejected this proposal.
As far as deals with potential distributors like Apple are concerned, it’s expected that the deals could be reached as soon as early 2018. This will enable companies like Apple to sell digital downloads of major movies merely two weeks after they’re released in theaters.
Filed in .. Source: bloomberg