cdanteek Posted March 3, 2006 Report Share Posted March 3, 2006 March 01, 2006 By Georg Szalai NEW YORK -- News Corp. is betting that people will pay $25-$30 to watch Fox films at home in high-definition quality via cable and satellite TV 60 days after their theatrical release. Speaking during the second day of the annual Bear Stearns Media Conference in Palm Beach, Fla., in a session available via webcast, News Corp. president and chief operating officer Peter Chernin said Tuesday the conglomerate has been "talking to the cable operators and satellite operators about the idea of a 60-day, high-priced high-def rental" offer costing $25-$30. He later repeated the $25 price range as a possible model in a hint that this could be closer to the final price point but didn't specify what kind of revenue split was likely for the HD-to-home product. At this year's Consumer Electronics Show, Chernin first mentioned that Fox was working on a plan for HD-to-home video on-demand offers 60 days after theatrical releases to establish a new HD window between theatrical and DVD runs amid a recent trend of shrinking distribution windows. However, pricing and other details of the planned HD service had not been clear. Chernin on Tuesday indirectly admitted that $25-plus might sound like a high price point, but he argued that more than 1 million Americans spent more than $25,000 last year on a home cinema setup, and they would be "desperate consumers" of such offers. Sources also said Tuesday that the HD window would target consumption by families and groups. For example, consumers could get some friends together, have food and drinks and enjoy a home premiere, one source suggested. With movie tickets in New York costing well above $10, the pricing actually could be attractive to high-end users, another industry observer suggested. Asked about the new-technology revolution in the industry, Chernin told investors that it will allow News Corp. and others to also monetize content in the broadband, wireless, set-top box storage and other fields beyond HD-to-home. Saying he was "happy" News Corp. doesn't own a music company, Chernin argued that the film business is in a stronger position to benefit from the current digital tidal wave partly thanks to its different distribution windows and price points. Discussing DVD market trends, the executive said pessimists sometimes overdo their concern for the home entertainment business. "The DVD business is not declining, but the rate of growth is slowing," Chernin said. http://www.hollywoodreporter.com/thr/imdb/...t_id=1002076585 Paul Bond and Andrew Wallenstein in Los Angeles contributed to this report. Link to comment Share on other sites More sharing options...
Brendon Posted March 4, 2006 Report Share Posted March 4, 2006 Chernin told investors that it will allow News Corp. and others to also monetize content in the broadband, wireless, set-top box storage and other fields beyond HD-to-home "Monetize"! Well, that's a new name for highway robbery but it describes perfectly what they're about. For $25 I would expect to keep the disc, not just rent it for a night. Setting such high prices for this material just serves to make people feel justified in copying the material for their own use. I think people like Chernin know the price they set will stop the customer from hiring out the film again for a second viewing, and so they're cynically just going for as much money as they can get on the first and only time. Pitching prices at a much lower, reasonable level would encourage consumers to rent a copy again or buy one for their home library. Link to comment Share on other sites More sharing options...
bimicher Posted March 4, 2006 Report Share Posted March 4, 2006 March 01, 2006 By Georg Szalai NEW YORK -- News Corp. is betting that people will pay $25-$30 to watch Fox films at home in high-definition quality via cable and satellite TV 60 days after their theatrical release. Chernin on Tuesday indirectly admitted that $25-plus might sound like a high price point, but he argued that more than 1 million Americans spent more than $25,000 last year on a home cinema setup, and they would be "desperate consumers" of such offers. If that number is true then there is really something wrong with those people! Link to comment Share on other sites More sharing options...
lynn98109 Posted March 5, 2006 Report Share Posted March 5, 2006 Sources also said Tuesday that the HD window would target consumption by families and groups. For example, consumers could get some friends together, have food and drinks and enjoy a home premiere, one source suggested. With movie tickets in New York costing well above $10, the pricing actually could be attractive to high-end users, another industry observer suggested. Can't wait to hear what the movie theatre industry thinks about it. Or is that, the former movie theatre industry ...? Lynn Link to comment Share on other sites More sharing options...
Brendon Posted March 5, 2006 Report Share Posted March 5, 2006 I think Chernin's idea is that the former movie theatre industry gets 60 days to 'monetize' you, and then News Corp gets to 'monetize' you. I wonder where he learned his business. When they've all had their way with you, you are left in a dumpster discarded and feeling 'monetized'. Link to comment Share on other sites More sharing options...
cdanteek Posted March 5, 2006 Author Report Share Posted March 5, 2006 I think Chernin's idea is that the former movie theatre industry gets 60 days to 'monetize' you, and then News Corp gets to 'monetize' you. I wonder where he learned his business. When they've all had their way with you, you are left in a dumpster discarded and feeling 'monetized'. 32 movie rentals or 1 plane ticket "Dow Nunda" cdanteek Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.