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The Devaluation of Entertainment Returns In Earnest

“Let’s give the studios the benefit of the doubt that in this instance they can charge a ‘theater tax’: this first wave of premium VOD titles were understood to be coming to theaters, so maybe consumers will appreciate they are paying for the privilege of watching these movies in their homes. But keeping prices artificially high beyond the near future will be increasingly difficult for studios aiming to keep their margins as large as possible at a time that their core business has collapsed. The traditional system of windowed releasing that consumers have come to expect for theatrical distribution is already a fairly flimsy construct in the digital age; as the next wave of premium VOD titles are made available, the notion that they command some kind of higher price point at a time when streaming services are offering similar titles for far cheaper is going to become a problem. The PVOD-SVOD price disparity is getting more absurd. You can get multiple movies with production costs well north of $100 million along with everything else on Netflix for $12.99, but then pay $20 for studio titles that aren’t A-level output?”
The Devaluation of Entertainment Returns In Earnest, With The Question, How Long Will Households Pay $20 For New Movies That Would Cost A Family Of Four $100 Or So Just To Go Out The Door? (PW)

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