Deadline – Studios Will Insist Theaters Accept Profit-Depressing PVOD Terms, Analyst Warns

A Premium Video-on-Demand (PVOD) model seems to be picking up steam and studios may publicly address the concept by the end of this business year.

June 12, 2017

‘Wall Street’s souring view of the movie exhibition business became a little more tart this morning after an analyst warned that theaters collectively could lose $380 million a year in profits from the introduction of a premium video on demand (PVOD) window, plus about $558 million from Netflix’s movie-making efforts.

MoffettNathanson Research’s Robert Fishman dropped his recommendations for Regal Entertainment and Cinemark Holdings to “sell” after concluding that the 90-day window during which movie theaters exclusively show new releases is “a luxury that studios can no longer afford.”’

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