According to CNET's Buzz Out Loud, Episode 1316, several major movie production companies (including Sony and Disney) are in discussion with TV providers to start a new rental service for recently released movies. Current On-Demand services for cable and satellite companies offer 24 hour movie rentals for approximately $3.99-$4.99. The movies made available On-Demand usually coincide with their respective DVD release dates, which arrive about 4 months after the movie has left theaters. The new plan being tested by the movie production companies is making new movies available immediately after their run in theaters; the current window being tested is somewhere around 30 days after it has left theaters, although some people have claimed they are trying to have movies available as quickly as the following day.
Although this sounds like a great idea, the price tag being attached for this service seems to be fairly high. The current testing price for this service is ranging from $24.99 to $30. For some customers, especially large families, this could be a great deal; there would be no travel expenses, no need to pay for eating out at a restaurant, or any of the expenses once you arrive at the theater (tickets, snacks, or the non-monetary expense of missing parts of the movie and being in a crowded theater). On the other hand, if you could simply wait for the movie to be released, a customer could OWN the movie for the same price the studio companies are asking for a rental. I believe there are people who would be willing to pay the premium for this shortened-release window, but in the end, the price point may be too high for most consumers to seriously consider this option.
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