Paramount wants films to be available to stream two weeks after their release in cinemas
Paramount is trying to change the way movies are released
Paramount Pictures has made a deal with two leading cinema chains to make two upcoming releases available on demand just two weeks after their release. AMC Theatres and Cineplex have both agreed to Paranormal Activity: The Ghost Dimension and Scout’s Guide to the Zombie Apocalypse to be available on demand just 17 days after release. The current home release cycle is 90 days however this fails to adapt to new needs of consumers and encourages piracy. Paramount conducted a study that found 72% of consumers were not aware of the 90 day delay.
Paramount hopes that this deal will prove to be a success as they plan on using the same release format for it’s major franchises like Mission Impossible and Star Trek. This could also lead other movie studies to follow the same format if they see it doesn’t damage their revenue and therefore change the way movies are released forever.
As the convenience of on demand streaming could lower attendance to cinemas Paramount will be sharing some of their streaming revenue for three months with the cinemas.
To sweeten the pot, the studio will share a portion of revenue from iTunes downloads, video-on-demand, and other digital channels with exhibitors that play the films, giving them a hedge in case box-office revenue declines.
Our expectation is that total revenue will rise and the theatrical revenue will be relatively unaffected, if at all
– Paramount vice chairman Rob Moore.