There seems to be an epidemic over the past few years taking place with several theatrical films. The average theater window of a film remaining in a theatrical run is 129 days but studios are pulling the cord a bit earlier than expected on certain films during their early lineup. This brings to mind the release of this summer's film; "G.I. Joe: The Rise of Cobra." The film was released on August 7th but the DVD/Blu-ray is expected to hit the market on November 3rd. This is a mere 88 days, which in return means the theatrical run limit is not being followed by Paramount. The film had a production budget of $175 million, without taking into considering the marketing, which was roughly another $150 million. Domestically the film earned only $149 million at the box office and with the foreign take being $150 million; the studio didn't generate a profit.
According to Reuters.com, the matter of releasing a film before the 123 day agreement is upsetting those in the theater industry. The current release date of "GI Joe: Rise of The Cobra" seems to have set the reaction of the theater industry in motion.
"Our members are ballistic. We don't know what Paramount is up to, but it's highly objectionable," National Association of Theater Owners (NATO) president John Fithian said.
For those not familiar with the National Association of Theater Owners, it's the largest exhibition trade organization in the world; known for their movie theater screens. They work with the federal government as well as movie studios on all matters film related. The chance of you seeing a movie in your local theater and the screen belonging to any other establishment is rather slim.
NATO views the fast release date as present concern because it can lead to other studios following suit with Paramount and releasing a film in less than three months after its theatrical run. This of course will hurt the theater industry financially.
NATO tries to keep their individual exhibitors in the loop when a studio has decided to release a film before the agreed schedule and at this time the exhibitor has the decision of removing the film from its theater lineup if it coincides with DVD/Blu-ray release date. The other option taken is playing hard ball with the studio for a future release when rental negotiations come about.
"I view the studios as our partners, but it seems like the rules of the game are changing. That's a concern. We at Cineplex have invested a lot of money in our theaters and in new technology such as 3D. So when something like this happens, it creates an issue with people from the standpoint of entertainment choices. If a guest of ours knows a movie is going to be on DVD in less than 90 days, then they know that if they miss it they can catch it on DVD not too much later, " Cineplex chief Ellis Jacob said.
Whispers68: NATO is perhaps concerned on whether consumers would opt to wait for the DVD/Blu-ray release if they know it won't be in theaters for a long period of time. Perhaps you may want to see the film but it isn't a top priority, but the moment you hear about the film being released on DVD/Blu-ray much sooner than expected, would the studio make the decision for you where you feel waiting isn't a bad idea?