Ticket To Stream

One of the business challenges that has held back the direct-to-consumer streaming of ticketed events — whether live concerts, Broadway shows, or first-run movies — has been the lack of an effective ticketing mechanism for over-the-top video. As there was no way to know how many people might be gathered around a particular screen rights owners and event producers had little choice but to charge an arbitrary price for the stream, usually high enough to account for the possibility of multiple viewers but at the cost of turning off people viewing alone or perhaps with only one other person.

home-theater-lightingSean Parker’s Screening Room, for instance, plans to charge a flat $50 per movie for in-home access to first-run films, which research shows could limit the market for the service.

The inability to know how many people are in the room also makes it difficult for providers to sell advertising or sponsorship in the stream because they cannot offer advertisers an accurate count of how many people were exposed to their messages.

In-home ticketing may be poised to have its moment, however, due to some recent technological advances. Read More »

Why Sean Parker’s Screening Room Could Succeed Where Others Failed

Efforts to shorten the theatrical window by enabling early in-home availability of movies have a poor track record in Hollywood. DirecTV’s effort in 2011 to offer movies in-home 60 days after their theatrical release for $30 quickly foundered, despite the support of four major studios, largely because the studios, fearful of retaliation from theater owners, didn’t shorten the window enough to persuade consumers to shell out the high ticket price. Digital HD, heavily promoted by 20th Century Fox, offers movies in home three to four weeks before their DVD/Blu-ray release for a premium price, but support from other studios has been spotty and DHD has had negligible impact on consumer behavior.

home-theater-lightingEfforts to eliminate the exclusive theatrical window altogether, such as Netflix’s insistence on making its original feature films available on its streaming service the same day they’re released in theaters, have been met with a near total freeze out by theaters, and no major studio has dared try.

It’s no surprise, then, that the new proposal from former Napster co-founder Sean Parker and Prem Akkaraju to offer movies in-home day-and-date with their theatrical release for $50, through a platform called The Screening Room, has sparked controversy in the Hollywood. Art House Convergence, which represents 600 independent theaters, released an open letter to the industry decrying The Screening Room concept.  “We strongly believe if the studios, distributors, and major chains adopt this model, we will see a wildfire spread of pirated content, and consequently, a decline in overall film profitability through the cannibalization of theatrical revenue,” the letter said. “The theatrical experience is unique and beneficial to maximizing profit for films. A theatrical release contributes to healthy ancillary revenue generation and thus cinema grosses must be protected from the potential erosion effect of piracy.” Read More »