Peter Jackson, James Cameron, Michael Bay and 20 Other Directors Release Anti Premium Video On Demand Letter

This coming Thursday Direct TV is lunching a new service called Home Premiere which lets it's subscribers watch movies only two months after they are released in theaters. There are several people opposed to this, including the National Association of Theater Owners. People are saying that this could be the first step in killing the movie theater going experience.  23 high profile filmmakers agree with this saying,

Why on earth would you give audiences an incentive to skip the highest and best form of your film? My films aren’t going to the home early, but many will, and that will weaken the movie theater industry—and then my movies are threatened.

This comes from  James Cameron, Peter Jackson, Michael Bay, Kathryn Bigelow, Guillermo del Toro, Roland Emmerich, Shawn Levy, Michael Mann, Todd Phillips, Brett Ratner, Jon Landau, Gore Verbinski and Robert Zemeckis, who are just a few of the filmmakers who have signed a letter expressing the creative community’s problems with this service.

I love going to the movie theater two watch the films I'm excited to see. But in all honesty there are just some movies I don't care to pay $12 - $20 dollars to see in the theaters. But those are also the same movies that I wouldn't pay $30 dollars to watch at home either. I can wait four to six months for it to be released on DVD to watch some of these films. This new service is for people that don't like to leave their houses, or don't want to deal with the annoying people that make going to the theaters a terrible experience, because lets face it, it happens all the time. That right there is the only reason I would even consider this service, well that and the cost of buying popcorn, a drink and Junior Mints is just ridiculous. I just wish more movie goers who have respect for the people around them. I don't want to pay $30 - $50 for a movie night to have some jackass talking on their cell phone in the movie. In the end, I do prefer watching movies in the theater than at home.

Here's the letter that was released, read it and tell us what you think.

AN OPEN LETTER FROM THE CREATIVE COMMUNITY ON PROTECTING THE MOVIE-GOING EXPERIENCE

We are the artists and business professionals who help make the movie business great. We produce and direct movies. We work on the business deals that help get movies made. At the end of the day, we are also simply big movie fans.

Lately, there’s been a lot of talk by leaders at some major studios and cable companies about early-to-the-home “premium video-on-demand.” In this proposed distribution model, new movies can be shown in homes while these same films are still in their theatrical run.

In this scenario, those who own televisions with an HDMI input would be able to order a film through their cable system or an Internet provider as a digital rental. Terms and timing have yet to be made concrete, but there has been talk of windows of 60 days after theatrical release at a price of $30.

Currently, the average theatrical release window is over four months (132 days). The theatrical release window model has worked for years for everyone in the movie business. Current theatrical windows protect the exclusivity of new films showing in state-of-the-art theaters bolstered by the latest in digital projection, digital sound, and stadium seating.

As a crucial part of a business that last year grossed close to $32 billion in worldwide theatrical ticket sales, we in the creative community feel that now is the time for studios and cable companies to acknowledge that a release pattern for premium video-on-demand that invades the current theatrical window could irrevocably harm the financial model of our film industry.

Major studios are struggling to replace the revenue lost by the declining value of DVD transactions. Low-cost rentals and subscriptions are undermining higher priced DVD sales and rentals. But the problem of declining revenue in home video will not be solved by importing into the theatrical window a distribution model that cannibalizes theatrical ticket sales.

Make no mistake: History has shown that price points cannot be maintained in the home video window. What sells for $30-a-viewing today could be blown out for $9.99 within a few years. If wiser heads do not prevail, the cannibalization of theatrical revenue in favor of a faulty, premature home video window could lead to the loss of hundreds of millions of dollars in annual revenue. Some theaters will close. The competition for those screens that remain will become that much more intense, foreclosing all but the most commercial movies from theatrical release. Specialty films whose success depends on platform releases that slowly build in awareness would be severely threatened under this new model. Careers that are built on the risks that can be taken with lower budget films may never have the chance to blossom under this cut-throat new model.

Further, releasing a pristine, digital copy of new movies early to the home will only increase the piracy problem—not solve it.

As leaders in the creative community, we ask for a seat at the table. We want to hear the studios’ plans for how this new distribution model will affect the future of the industry that we love.

And until that happens, we ask that our studio partners do not rashly undermine the current – and successful – system of releasing films in a sequential distribution window that encourages movie lovers to see films in the optimum, and most profitable, exhibition arena: the movie theaters of America.