It might sound counterintuitive, but releasing a movie and its DVD version both in theaters and on DVD in the same window could boost studio revenue, according to a new study by a group of international researchers to be published this October.
The report, “The Last Picture Show? Timing and Order of Movie Distribution,” found that studios could gain a 16 percent increase in U.S. revenues – if they release films in theaters, on rental DVD and video-on-demand at the same time, followed three months later by a DVD sell-through release. Of course, even under that scenario, there is a big loser: movie theaters, which would see a fall-off of 40 percent in revenues, Marketing Power (via Video Business magazine) reported. Additionally, the U.S. is the only country in which a simultaneous release would grow studio revenue.
Researchers surveyed 1,770 consumers in the U.S., Japan and Germany to study how theatrical, DVD and VOD revenue for films have shifted and how different distribution scenarios would benefit studios. The study also found that in order to boost revenue in Germany and Japan, studios would need to release movies for sale on DVD three months after their theatrical debut, followed by a DVD rental release and VOD release one year after the theatrical opening.
In line with other studies, the researchers found that in the U.S., studios could improve profit margins without reducing theater revenue by pushing back the DVD rental window and VOD window. Under that scenario, a film would first debut in theaters, followed three months later by a DVD sell-through debut with slightly higher pricing, followed three months later by the DVD rental and VOD release. Release
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