New York – Hollywood movie studios Sony (NYSE: SNE) Pictures, Warner
Bros. (NYSE: TWX) and Disney (NYSE: DIS) are in talks with cable TV providers on charging consumers up
to $30 for the ability to view movies on video-on-demand systems soon after
they run in theaters, Bloomberg reported, citing sources. The studios are
reportedly discussing the idea with In Demand, the video-on-demand joint
venture between cable TV providers Comcast (NASD: CMCSA), Time Warner Cable (NYSE: TWC) and Cox.
Time
Warner CFO John Martin said at an investor conference last week that Warner
Bros. plans to begin testing such a service later this year, with films priced
at $20 to $30 per viewing, according to Bloomberg.
Meanwhile, Disney is also
said to be in talks on streaming movies to Microsoft’s (NASD: MSFT) Xbox 360 and Sony’s
PlayStation 3.
Currently, some studios are cutting deals with the cable TV
providers that offer consumers access to their films at home while they are
still playing in theaters, charging as much as $10 for the privilege.
Studios
will likely encounter criticism of the idea from movie theater exhibitors, who
have decried the narrowing of windows between theatrical and home video
releases.
Related Links:
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(Bloomberg)
