Sweeping changes to the movie theater industry aren’t likely to happen anytime soon according to AMC Entertainment CFO Craig Ramsey.
During a recent speaking engagement at the Citi Global TMT West Conference in Las Vegas, Ramsey said talks regarding a premium video on demand window have lost steam. It’s not the topic that it was earlier, Ramsey said, adding that the whole concept is a “very complicated” matter with “no consensus.”
For those who don’t know, Ramsey is referring to the possibility of making theatrical releases available to rent in the home as early as three weeks after launch. Renting a premium movie wouldn’t be cheap – around $30 to $40 per – but for those that despise watching flicks in theaters or those with large families, it makes a lot of sense.
Giving consumers options and letting them decide how they want to consume media sounds like a great idea to me.
The problem is that, if you limit new movies to a run of just three weeks in theaters, people will stop going to theaters and simply wait a few weeks to see the movie they want in the comfort of their own homes. It would more or less destroy the traditional theater industry and well, theaters don’t want that.
If there are to be changes, theater owners want a cut of the money. Deciding on how much they should get from movie studios is what’s holding up the overall deal and if Ramsey is correct, the matter won't be settled anytime soon.