Dish Network in Talks to Offer Premium Video Rental Service

Mojo Jojo

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From Bloomberg (Dish Network in Talks to Offer Premium Video Rental Service - Bloomberg) :


Dish Network in Talks to Offer Premium Video Rental Service

By Alex Sherman - May 12, 2011 11:00 PM CT

Dish Network Corp. (DISH), the second- largest U.S. satellite-television provider, is considering a video-on-demand service to offer Hollywood movies about eight weeks after they’re released, said an executive.
The service would likely have terms “similar” to those of DirecTV, including a price tag of about $30, Tom Cullen, a Dish executive vice president, said in an interview. DirecTV, the largest satellite-TV operator, announced the debut of its Home Premiere service last month, giving customers the option to purchase certain movies for $29.99 eight weeks after theatrical release.
Dish, based in Englewood, Colorado, is in negotiations with Hollywood studios and no final decision has been made on whether to introduce the service, said Cullen, who oversees programming, sales and marketing.
Studios are searching for ways to boost at-home revenue as DVD sales shrink. Comcast Corp. (CMCSA)’s Universal Pictures, Time Warner Inc. (TWX)’s Warner Bros., Sony Corp. and News Corp. (NWSA)’s Twentieth Century Fox have agreed to offer movies to DirecTV’s Home Premiere, including “Hall Pass,” starring Owen Wilson, and “The Adjustment Bureau,” starring Matt Damon.
Several theaters, including AMC Entertainment Inc. and Cinemark Holdings Inc., have criticized studios for shrinking the on-demand window from the traditional 12 to 16 weeks to eight weeks. The theater chains have threatened not to play or promote movies that are pegged for early home release, fearing customers may skip the theater to watch on demand.
Comcast said last month it was in discussions to offer on- demand movies six to eight weeks after entering theaters. Both Comcast and DirecTV said pricing may be adjusted as the program evolves.
To contact the reporter on this story: Alex Sherman in New York at asherman6@bloomberg.net.
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net
 

Tampa8

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I too find it hard to believe that many will pay that. (As I said for the Direct TV program) Wait a little longer (sometimes a very little longer) and pay $6.99 or so to rent, or wait for Blu-ray and own it, sometimes for around $15 to $20+. (And again, less if you wait)
The only scenario I see where it works, is a family who has been waiting for a movie to come out, wants to see it while everyone else is talking about it. This would be less than going to the movies, and more convenient. Maybe they will prove us wrong, I predict the cost will come down to around $20 or so, unless the movie companies insist on keeping the cost high.
 

lakebum431

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So I assume this is just going to be offered via their current VOD service? I agree with the others that I think the price is just too high. I don't mind waiting for the traditional release date.
 

Scott Greczkowski

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I understand that the Premium service on DIRECTV is doing better then they expected.

Honestly $30 isn't bad when you compare going to the movies with a family of 4.
 

mike123abc

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Aside from TP space, it really costs Dish (and DIRECTV) very little to rotate these in their PPV. If they generate more revenue than a regular PPV taking up the same satellite space it is good for the satellite company. If a lot of movies get offered this way, there must be buyers. If it fades away after a couple years...
 

JosephB

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Even if they don't sell any movies, it gets their name out there and is a good marketing tool. I can imagine there are customers who would sign up for a given provider if this service was available, and then end up not actually buying any of the movies. The marginal cost of offering an early release movie vs. a standard PPV is zero or near zero, I'm sure DirecTV only pays the studio if someone watches the movie, plus maybe a tiny retainer/residual. Given how much press its getting, it's worth it for them.
 

pabeader

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think about the marketing though. you and the kids are at the movies and someone has to go potty. there ain't no pause button. for less money you can watch it in the comfort of your home and there is a pause button!!! but for it to work at all, it has to be available at the SAME time as the theater. theaters are dying anyway. why do we still use that as a 'start' date??
 

snowbum

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If you already waited the eight weeks for it to be provided for $30 on your dish, why not wait the additional 4 to 8 weeks for it to be under $10.
I guess for a family, it's cheaper then taking everyone, or just taking some and paying a babysitter.
 

lakebum431

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That's the only way it really makes sense (for a family). Then you are truely saving money. However, if you are that concerned about saving money, what's another month (when the movie will be out on DVD or Blu)?
 

Geronimo

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I understand that the Premium service on DIRECTV is doing better then they expected.

Honestly $30 isn't bad when you compare going to the movies with a family of 4.

But is that the valid comparison? i guess it is to some.
 

Liquidforce88

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Like I said in the D* forum. I just can't see many people doing this. Family's that can't afford the price of a theater will wait for it on Netflix. The only reason I goto the theater now is for an experience or a time out with the wife. But for the price of $30 that get's the wife and I a first run movie pop, popcorn and some candy.

I belive it was said in the D* forum that this service was aimed at the Home Theater buff. The only thing is this is not going to give those individuals the video quality that they are looking for. Those types will wait for BluRay.
 

Mojo Jojo

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Update: Dish Network in Talks to Offer Premium Video Rentals 8 Weeks After Release

From Dish Network in Talks to Offer Premium Video Rentals 8 Weeks After Release - Bloomberg :

Dish Network in Talks to Offer Premium Video Rentals 8 Weeks After Release

By Alex Sherman - May 13, 2011 3:36 PM CT

Dish Network Corp. (DISH), the second- largest U.S. satellite-television provider, is considering a video-on-demand service to offer Hollywood movies about eight weeks after they’re released, an executive said.
The service would likely have terms “similar” to those of DirecTV, including a price tag of about $30, Dish Executive Vice President Tom Cullen said in an interview. DirecTV, the largest satellite-TV operator, announced the debut of its Home Premiere service last month, giving customers the option to purchase certain movies for $29.99 eight weeks after theatrical release.
Dish, based in Englewood, Colorado, is negotiating with Hollywood studios, and no final decision has been made on whether to introduce the service, said Cullen, who oversees programming, sales and marketing.
Studios are searching for ways to boost at-home revenue as DVD sales shrink. Comcast Corp. (CMCSA)’s Universal Pictures, Time Warner Inc. (TWX)’s Warner Bros., Sony Corp. (6758) and News Corp. (NWSA)’s Twentieth Century Fox have agreed to offer movies on DirecTV’s Home Premiere, including “Hall Pass,” starring Owen Wilson, and “The Adjustment Bureau,” starring Matt Damon.
Several theater owners, including AMC Entertainment Inc. and Cinemark Holdings Inc. (CNK), have criticized studios for shrinking the on-demand “window” from the traditional 12 to 16 weeks to eight weeks. The theater chains have threatened not to play or promote movies that are pegged for early home release, fearing customers may skip the theater to watch on demand.
Comcast said last month it was in discussions to offer on- demand movies six to eight weeks after entering theaters. Both Comcast and DirecTV (DTV) said pricing may be adjusted as the program evolves.
Dish fell 39 cents to $28.81 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have risen 47 percent this year.
To contact the reporter on this story: Alex Sherman in New York at asherman6@bloomberg.net
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net
 
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