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This is not a good time to be in the movie exhibition business, according to a new report from Moody’s Investors Service. But it offers theater owners one bright spot – there’s no need to worry about premium video-on-demand services.

Moody’s said the threat from premium VOD is “overstated.” The Los Angeles Times reports, “Initial consumer response has so far been tepid.”

DirecTV is the only major multichannel video operator so far to nationally offer the movies in the controversial home premium window, which generally begins 60 days after the theatrical release. DirecTV has branded this service as Home Premiere, and charges $29.99 for 1080p HD feature films like its current showing, 20th Century Fox Home Entertainment’s Water for Elephants.

Traditionally, movies first become available for in-home viewing four months after they leave the theater, when the DVD is released. Video-on-demand availability usually starts about 45 days after that, followed by pay TV showings 18 months later. It’s at least another six months before movies turn up on other screens. Water for Elephants opened on April 22.

Theater owners expressed their anger when the four major studios joined with DirecTV to test market home premium, out of concern that it would encourage consumers to wait rather than see features in the theater.

Related Links:

Moody’s report: http://tinyurl.com/3run8k2

Los Angeles Times post: http://tinyurl.com/3gp3k4a

Home Media Magazine post: http://tinyurl.com/3gy95gv

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