News corp. exploring high definition film rentals from Fox
Posted on 06/03/06 03:21 by Dan Bell                             
News corp. exploring high definition film rentals from Fox

As a lot of us are trying to get our heads around the investment in the next generation of high def content,  News Corp. is thinking of letting us rent said material rather than buy it, for just 25 to 30 dollars a pop. Delivery will be downloaded across cable and satellite TV, 60 days after theatrical release.

Speaking during the second day of the annual Bear Stearns Media Conference in Palm Beach, Fla., in a session available via webcast, News Corp. president and chief operating officer Peter Chernin said Tuesday the conglomerate has been "talking to the cable operators and satellite operators about the idea of a 60-day, high-priced high-def rental" offer costing $25-$30.

He later repeated the $25 price range as a possible model in a hint that this could be closer to the final price point but didn't specify what kind of revenue split was likely for the HD-to-home product.

At this year's Consumer Electronics Show, Chernin first mentioned that Fox was working on a plan for HD-to-home video on-demand offers 60 days after theatrical releases to establish a new HD window between theatrical and DVD runs amid a recent trend of shrinking distribution windows. However, pricing and other details of the planned HD service had not been clear.

I guess it is only natural that high definition would be a "high price" product, but will the market bear such a price? News Corp. should know, their business is distributing a wide variety of entertainment content. They feel that folks that live in say, New York, that are seeing 10 dollar box office tickets, may find that this is a frugal way to see the films and from the comfort of their own homes. If they have the financial resources to avail themselves to equipment suitable to view said content though, they may not be that concerned about movie ticket prices.

However, this high definition situation is becoming more bizarre by the minute. Even if a film is released a couple months after the box office debut, we have to wonder how many will opt for a 25 dollar rental. Let alone one that must be downloaded. We also have to ask ourselves, is the viewing experience of 1080i or 1080p, that attractive a product to tempt enough of a market share to support such a venture? News Corp. seems to think so! Time will tell I suppose.

Source: The Hollywood Reporter

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By Saruman, Mon 6 Mar 2006 13:33
I have been saying it for a while now. This is the future of all media, movies, music and as soon as they can go paperless: books and magazines.
By psychoace, Mon 6 Mar 2006 16:29
If they allow you to watch movies that are have recently been released in theaters then this could be an optimal family situation because it costs less for 4 people to watch one of the rentals then it cost for 4 people to go to the theater.
By mpeace, Mon 6 Mar 2006 17:42
One must also keep in mind that this price is just for starters... they're using the hype in the beginning to get the curious people that are willing to pay this much money to test the system slowly and see how much people are willing to pay. In the long term of course prices will go down drasticly..... Remember what the first dvd's cost? In this case you don't have a medium in your hand but it's the same thing.
By psychoace, Mon 6 Mar 2006 20:27
yeah but prices wont drop that much compared to dvd's since there is media to raise expenses. The more they produce dvd media the cheaper it gets to produce it. With HDTV it isn't the same bandwidth dosn't get cheaper the more you use and the cost of servers and the maintence on them will keep costs at about the same price. 25 bucks still sounds nice for family oriented house holds but not something an individual would pay for.
By Saruman, Tue 7 Mar 2006 13:16
Nope. And just like with cable and satellite, they will probably start making you pay per set top box that you have in your house, so that if you want to have the movie today, it'll cost $25 and no questions asked. In a couple years, it'll be $15 per set top box to watch the movie. And remember, this is only a one time or perhaps a month's subscription to watch the movie. You don't get to keep it unless you continue to rent it at the "low" monthly rental price of $7.50 and if you miss one payment your Tivo is wiped of that movie. devil Here's where they can shove it -> puke
By cynicalbastard, Wed 8 Mar 2006 19:18
So, essentially: 1) pay $25 2) face considerable inconvenience *downloading* large movie. Wait. Wait some more. 3) receive nothing tangible for safekeeping, despite paying gold prices 4) try to convince yourself the increased resolution - let alone the content - is worth the 25 bucks. Yep, all the makings of a successful strategy. Obviously, they are testing the market with the high introductory pricing. The offers coming from overpaid corporate suits these days are just laughable. Also, no mention of DRM. I doubt they'd let you easily archive the recording you payed for - despite paying gold prices for it.

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