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EXHIBITOR FIRES WARNING SHOT AT STUDIOS OVER VOD

April 7, 2011 by · Leave a Comment 

Some theater chains are threatening not to run free trailers for movie studios if the studios go ahead with plans to inaugurate “Premium VOD” — that is, making movies available for viewing for around $30 via cable, satellite TV, or the Internet a few weeks after they premiere in theaters. “We are not here to market movies for DirecTV and VOD,” Alan Stock, CEO of the Cinemark theater chain told the Hollywood Reporter. Cinemark notified Warner Bros., Fox, Universal and Sony, the four studios that have said they plan to go ahead with Premium VOD plans, that it won’t run trailers or put up posters for any movie until it receives written notification about whether the movie will be part of a Premium VOD package. Regal Entertainment, the nation’s largest theater chain, said that it won’t screen any film that’s scheduled to appear on Premium VOD. The tactics could backfire, however, damaging the exhibitors as harmfully as the studios.