Apple, Comcast May Soon Allow Downloads Of Recently Released Movies

If you don’t have time to go to the movies to catch Hollywood’s latest releases, you might be able to watch them at home. Movie studio companies, including Warner Bros. and Universal Pictures, could partner with distributors like Apple and Comcast to bring digital rentals of films to consumers just weeks after they’re released in theatres, according to Bloomberg.

The distributors would sell digital downloads of big movies as soon as two weeks after they release in cinemas.

As companies struggle in the streaming-era and decreasing DVD sales, movie studies have reportedly been pushing talks with Apple and Comcast, while trying to bypass objections from cinema chains for the project. Studios and chains have been negotiating with each other for months and have not been able to agree on a way to create a $30 to $50 premium movie-download option.

Leading movie studios, except Walt Disney Co., have discussed splitting revenue from premium video content with theatre chains. The cinema companies are trying to land a long-term contract, which could be as long as 10 years, for the split revenue, but studios are not happy about that.

Now Hollywood studios are considering ignoring theatre chains demands and could reach deals with distributors like Apple and Comcast, which owns Universal Pictures, by early next year. The agreements with distributors would allow studios to pressure theater chains into agreeing to the deal or end up selling the digital downloads anyway. However, cinemas could fight back by boycotting movies that slated to be sold digitally. All could be tough talk though, as one side tries to pressure the other.

Disney is reportedly not interested in taking part in the discussions because it prefers concentrating on fewer, bigger event movies that need to be seen in cinemas, sources told Bloomberg. Disney recently revealed its plans to create streaming platforms, which has added pressure on cinemas to reach an agreement with studios, people familiar to the matter told Bloomberg.

Disney’s plan is already threatening Netflix. Earlier this month, Disney CEO Bob Iger announced plans to pull Disney and Pixar films from Netflix. The move comes as Disney prepares to launch its own direct-to-consumer streaming service in 2019, with an ESPN streaming service arriving next year. Disney’s service will include 2019 movies, like "Toy Story 4" and "Frozen ," ESPN’s service will include about 10,000 live regional, national, and international games and events a year. Netflix will continue to stream Disney movies until the end of 2019, but will then have to give up right to more than 100 Disney titles.

The terms that are being discussed vary between each studio and theater chain. Some talks are geared towards a digital download about 17 days after a cinema release, priced at about $50, or a download four to six weeks after a theater release for $30. Other options include a trial with new release windows overseas before trying it in the United States.

Theater executives have pointed out that about half of a movie’s revenue comes from its time at cinemas, claiming digital downloads could impact the cash in-flow However, others have said money theaters are making that much money because of declining DVD sales, which were down 10 percent in the first half of 2017.