Earlier this week, Disney and Sony Pictures were reported to have started making their latest films available on video-on-demand services in South Korea at the same time as their theatrical release. Django Unchained and Wreck-It-Ralph are two of the films being tested under the new model, showing up for legal download or streaming while they were still playing in theatres.
South Korea has proven one of the more difficult markets for international movie studios. Universal and Paramount ceased their home video operations in the country in 2006 as a result of rampant piracy, both online and through counterfeit DVDs. The country’s excellent broadband infrastructure has made piracy even more common, with Variety reporting only yesterday that mobile phone owners will soon be able to download a full movie in less than a minute.
These factors have caused problems for Hollywood studios attempting to release their films into Korean cinemas - while the theatrical market is still significant, distributors will be attempting to take advantage of the online technology that has previously been a liability.
But will it work? Could a similar model be applied here in Ireland?
Opportunities and challenges
Outside of Korea, film studios have slowly adapted to the potential of VOD. iTunes in the US, for example, offers a selection of smaller films for rental during or even before their theatrical run, priced a couple of dollars higher than the average movie download (to emulate the ‘premium’ pricing of a theatrical ticket).
In Ireland & the UK, films typically show up on iTunes and other major VOD platforms at the same time as their DVD and BluRay release. However, a limited selection of theatrical arthouse releases have also been made simultaneously available for purchase on the Irish Volta website (run by Element Distribution) and the UK’s Curzon Home Cinema. Again, those who prefer to watch their new releases at home will pay a premium for the privilege - €8.99 on Volta, compared to €3.99 for older releases.
While embracing VOD seems like a natural step forward for the studios, they have been slow to adapt. The theatrical market remains by far the largest market for mainstream Hollywood releases, with DVD and BluRay sales in nearly constant free-fall. Cinemas are still responsible for the bulk of the revenue.
There’s also the question of whether the VOD market will prove profitable. While Netflix goes from strength to strength, content providers will receive limited revenue from these subscription-based sources. On-demand services like iTunes remain niche services rather than absolute successors to physical formats. Will consumers be happy to pay theatrical ticket prices - or, quite likely, even higher - for downloads or streams?
Power of the cinema
More than anyone, the cinema owners themselves are primarily responsible for preventing the move towards simultaneous release patterns. Theatres rely on the prestige of the ‘new release’, and most are unwilling to risk losing already precarious ground to competing methods of distribution.
In 2010, for example, Odeon cinemas threatened to not show Alice in Wonderland after Disney said they would release the DVD a mere twelve weeks after the theatrical debut, compared to the usual seventeen weeks. Although Odeon eventually conceded (and the film went on to become one of the biggest grossing productions of all time), the situation illustrated the tensions that can arise when a studio attempts to break from tradition.
The blockbuster’s place in the multiplex is therefore likely secured for the foreseeable future, so it will perhaps be the independent films that pave the way for a multi-format release schedule. July will see the UK production A Field in England released simultaneously on DVD / BluRay, TV (FilmFour), VOD and in cinemas. The distributors and exhibitors are optimistic each format will attract an audience. The experiment will undoubtedly be worth keeping an eye on. If it’s a success, it could signal a positive change in release patterns here in Ireland, without leaving anyone behind - perhaps the key will be to simply give the audience a choice.
