COVID-19 infects release windows
With the closure of movie theatre’s, studios have had to re-think their theatrical release distribution strategy on the fly. There has been a myriad of approaches taken, all which will provide insight into how distribution will change on the back end of the pandemic.
The Walt Disney Company made Frozen 2 available three months ahead of schedule on Disney+. MGM postponed their tent pole release of No Time to Die. Meanwhile, Universal is bringing smaller budget films to digital rental at an accelerated pace. The studio is making its current movies in cinematic release, The Invisible Man, The Hunt, and Emma available on-demand for a 48-hour rental at $19.99 each. Further, Warner Bros. is making a similar move, making Birds of Prey available for digital purchase earlier than its anticipated video-on-demand release. One thing is clear, distribution strategies will not look the same ever again.
The NPD Take:
- This is the in-market release window testing that movies studios have been wanting for years, although in no way how they wanted it to come about. It’s far from a controlled test as consumer behavior is being impacted by quarantine and social distancing. Regardless, the movie industry will now have data that will help them understand the impact of tinkering with the theatrical exhibition window.
- Movie theatre’s will re-open and viewers will be ecstatic to go out again. However, there will be a new normal. It’s plausible to expect lower budget films to have a shortened or even non-existent theatrical window. Blockbuster films will likely revert back to more traditional windowing as the theatrical experience is lucrative and helps build an audience for home entertainment releases.
FOX acquires Tubi
FOX entered into an agreement to purchase the independent AVOD service Tubi TV for $440 million. Tubi was among the last independent AVOD services in the market. Over the past year, ViacomCBS purchased PlutoTV, NBCUniversal acquired Xumo and now FOX picked up one of the last major ad-supported services. FOX is looking at Tubi as a way to future distribute its programming and increase its DTC infrastructure. Tubi will also be able to use Fox’s advertising and distribution relationships along with its national and local promotional platforms.
The NPD Take:
- Advertising supported video distribution has proved a valuable asset for broader content distribution. As such, Vudu is likely the next to be acquired and integrated into a larger offering.
- All of the major media companies now manage an infrastructure to deliver streaming video direct to their consumers. Their vertically integrated stack from the technical platform, content production and distribution now provides each greater control of their future.
Sharing is caring
Movies Anywhere, the locker for digital movies, is beta testing a new feature – Screen Pass. While new to digital, this is as old-school as it gets. Back in the day you could lend a friend your VHS tape or DVD. In the digital era, that hasn’t been possible. Screen Pass lets owners of digital movies share up to three per month with whomever they want. There are restrictions, but the key here is that the person who borrows the movie must have a Movies Anywhere account. This is a great way to build awareness for the value of ownership at a time where viewers are rapidly migrating to an access model through streaming services.
The NPD Take:
- Sharing with a friend lets potentially new digital movie buyers get exposed to the idea of a digital collection. In turn, the largest success metric here will be the ability to gain new users, a.k.a. digital movie buyers, through their exposure to digital ownership.
- What took so long? Being able to share what you own has always been a benefit of owning over renting. Enabling this feature in the digital environment helps further the value of ownership at a time where more consumers are migrating to the impermanent world of streaming video.