The Movie Business

Where do you prefer to watch movies, at home or in the cinema? The article below from the Guardian is all about a change in release patterns of films and what effects this could have for the film industry.

Before you read, answer these questions:
1. Do you watch more films at home or in the cinema?
2. When was the last time you went to a movie theater?
3. When you watch movies at home, do you get them online, from a video store or do you own the videos?
4. What are some advantages and disadvantages of watching movies at home rather than in the cinema?

Now skim the article (look over it quickly while searching for specific information without actually reading every word) to find this information:
5. What is VOD?
6. What's the cost of a night out at the cinema vs. a home movie night?
7. Typically, how long does a film run in the cinema before its VOD release?

Finally, read the article (every word!) and answer the questions after the article.

Top Hollywood directors protest over home downloads

Film-makers say studios' plan to allow video-on-demand while movies still on release could close cinemas and increase piracy.

Kathryn Bigelow was among 20 leading Hollywood directors who have written to four studios protesting over their plans to allow home downloading of films while they are still at the cinema. Photograph: Startraks Photo /Rex Features

More than 20 leading film-makers, including James Cameron, Peter Jackson and Robert Zemeckis, have written a protest letter to Hollywood studios over their decision to allow films to be downloaded into people's homes while they are still being screened in cinemas, rather than once they have completed their theatrical run, will take its toll on the box-office and film-making.

The directors say they are shocked that Sony Pictures Entertainment, 20th Century Fox, Universal Studios and Warner Bros are to release some films on a premium video-on-demand (VOD) service 60 days after their cinema release. At the moment, cinemas generally have an exclusive run of around 120 days.

Although VOD and theatrical releases are already overlapping for some films, directors and producers are alarmed that four of the biggest studios are going down that route.

They have joined cinema owners to warn that reducing the exclusive release window traditionally given to cinema chains will lead to dwindling audiences and increased piracy with pristine digital copies being made available so early.

Cameron, who was showered with Oscars for Titanic and Avatar, said: "The cinema experience is the wellspring. If the exhibitors are worried, I'm worried. Why on earth would you give audiences an incentive to skip the highest and best form of your film?"

The letter, whose signatories also include Kathryn Bigelow, Roland Emmerich and Michael Mann, states that changing release patterns "could irrevocably harm the financial model of our film industry".

Acknowledging that studios are struggling to replace revenue lost by declining DVD sales, it condemns "a distribution model that cannibalises theatrical ticket sales". It warns: "Some theatres will close. The competition for those screens that remain will become more intense, foreclosing all but the most commercial movies from theatrical release."

Last week, Sony's Just Go With It, starring Jennifer Aniston and Adam Sandler in a romantic comedy about a plastic surgeon who pretends to be married, had a VOD release 70 days after opening in cinemas.

John Fithian, head of the National Association of Theatre Owners, which represents cinemas in 50 countries, including the UK, warned of the perils of what he called a "misguided adventure".

Phil Clapp, chief executive of the Cinema Exhibitors' Association in the UK, said that it could be "particularly destructive" for smaller, independent cinemas, leading to "a significant enough erosion of attendances to make them no longer financially viable".

But the industry is divided. A leading British producer, Stephen Margolis, head of Future Films, sees the benefits of change. He released his film Flawless, starring Demi Moore and Michael Caine, on VOD three weeks before it went into theatres to work up word-of-mouth recommendations.He said: "The film industry has an opportunity to avoid some mistakes that the music industry made. It has to grasp reality and understand what the consumer needs are. With VOD, you can watch it when you want, you don't have to book a babysitter, and it's no longer a £100 evening, but maybe £15 or £25 for VOD."

This seems to be the next chapter in the internet's revolution of home entertainment. The legal downloads of films more than doubled from £35m to £78m in 2010, according to a recent report by the British Video Association. Last year, the supermarket giant Walmart, owner of the Asda chain in Britain, acquired the US VOD service Vudu. Last month, Tesco saw the potential of the British VOD market, taking an 80% stake in Blinkbox, a rival to existing services such as Amazon's LoveFilm.

Christopher Dodd, head of the Motion Picture Association of America, which represents the studios, said: "Films are made to be shown on big screens in dark theatres filled with people." He added: "This is all part of a broad effort by our industry to lead through innovation and develop new business models that respond to growing demand by expanding consumer choice in an era of tremendous technological development."




Questions:

8. What do the film studios want to change?

9. What effects will this have on movie theaters? What do the directors say?


10. How has the number of legal film downloads changed in the last years?

11. Do you think this will significantly change business in movie theaters?




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