https://www.bloomberg.com/news/arti...s-with-film-studios-for-earlier-movie-rentals
Apple Inc. is pressing Hollywood studios for earlier access to movies, according to people with knowledge of the matter, a move that would bolster the company’s iTunes business.
21st Century Fox Inc., Time Warner Inc.’s Warner Bros. and Comcast Corp.’s Universal Pictures all confirmed over the past week that they are looking to offer high-priced, home-video rentals of new movies shortly after they open in theaters. Some studio executives have been pushing to allow home rentals as early as two weeks after theatrical debuts and are considering a deal with iTunes as one option, said the people, who asked not to be identified because the discussions are private.
The most recent talks are part of longer-running efforts by Cupertino, California-based Apple to get new movies sooner, two of the people said. Such an arrangement could help iTunes stand out in a crowded online market for movies, TV shows and music. While the iTunes store helped Apple build a dominant role in music retailing, the company hasn’t carved out a similar role in music and video streaming.
Hollywood studios typically give theaters exclusive rights to new movies for 90 days or more before issuing them on DVD or making them available for online purchase. With cinema attendance mostly stagnant and home-video revenue flat in recent years, film companies are under pressure to find new areas of growth.
One option is a premium-priced online rental for new movies, at prices of $25 to $50, a possibility under consideration at the studios, according to people with knowledge of the matter.
Theater chains have battled to keep their exclusive hold over new movies, in some cases boycotting films that were released too soon for home viewing. But Cinemark Holdings Inc., the No. 3 U.S. exhibitor, said recently it’s looking for solutions that would benefit both sides and held preliminary talks about creating a so-called premium window for home entertainment. Such a service is likely within the next 18 months, one of the people said.
Those talks may have gained momentum after Sean Parker, the founder of Napster, said in March he was trying to create a new home-video service, called Screening Room, that would offer viewers movies on the same day they were released in theaters. The company has also discussed offering movies at home after 14 days in theaters, two of the people said. A spokeswoman for Screening Room declined to comment.