Warner changing distribution rules
April 30th 2008
New York Times reports that Time Warner will now offer movies via video-on-demand services on the same day that the DVD version is released.
"Taking a customer and moving that person over from rental-physical over moving them to VOD day-and-date is like a 60 to 70 percent margin instead of a 20 to 30," said Jeff Bewkes, CEO, Time Warner. "So it's about a three-to-one trade."
Kevin Tsujihara, president, Warner Home Video, told the New York Times that we are moving into an era when thousands of titles will be available for rent on systems, like the Apple TV.
Editor's note: With physical media on decline and Broadband 2.0 already a reality in some markets, these developments are to be expected. I imagine the cautionary tale of the music industry is always foremost in the minds of movie executives...
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