James Cameron stands up for theater owners against studios' premium vod service

James Cameron has joined theater owners in their standoff against studios over a new premium VOD service. Other prominent filmmakers are also prepared to side with exhibitors in a show of support for the theatrical experience. Many of the country's largest theater chains are figting back hard at Warner Bros., Fox, Universal and Sony, whose VOD deal with DirecTV is reportedly finalized. 

According to THR, Cinemark Entertainment told studios today that "it won't carry trailers, or put up signage, for any movie until the studio notifies it in writing whether the title will be part of the premium VOD offering down the road. Cinemark also could refuse to play a film." Here is what Cinemark CEO Alan Stock had to say:

"We are not here to market movies for DirecTV and VOD. We are demanding they tell us upfront what movies those are. Our goal is to promote and advertise movies for their theatrical run."

This news comes on the heels of Regal Entertainment announcing that it's slashing the number of trailers it plays by them by half. As of April 15, Regal theaters will also not play a spot for any film that's slotted for premium VOD. AMC Entertainment is expected to follow suit, reps met with studios Wednesday to discuss the steps it plans on taking. Regal, AMC and Cinemark "are the country's three largest theater chains, respectively, representing nearly 16,000 of the 38,605 screens in the U.S."

DirecTV is expected to launch their "Home Premiere" service this month, followed quickly by a similar service on Comcast and VUDU. This will allow audiences to see films 60 days after its theatrical release for $29.99. Theater owners feel that the theatrical window is threatened by this and sends the message that "watching a movie at home is just as good as seeing it in a theater."

Director Todd Phillips spoke out against the premium VOD service while at CinemaCon, the annual convention of theater owners. He was there with Warner Bros. to promote The Hangover Part II. Phillips told theater owners "he makes his films for the big screen, not for the small screen. Otherwise, he would be have been a television director."

Cameron also at CinemCon told exhibitors that "the theatrical experience can't be repeated in the home, particularly when it comes to digital 3D and new technologies." It's reported that Cameron, along with other industry leaders, will go public with his opposition to the premium VOD service in the coming days.

Studios are said to be making the move to VOD services because they are looking for ways to make up for collapse of the DVD market, once a major source of revenue. Also, they say movies don't play in theaters beyond four or five weeks anyway. The release windows continue to get shorter, films appear on DVD 90 to 120 days after they exit theaters.

Regal CEO Amy Miles said "a healthy theatrical window is important to the entire movie industry."

"Based on the recent announcement regarding Premium Video on Demand, we are amending our policies for support of films from studios participating in the new VOD model," Miles said. "It is simply not in Regal's best interest to utilize our resources to provide a marketing platform for the release of Premium Video on Demand movies."

Just today I watched Hobo With A Shotgun on VUDU, before it even has had it's theatrical run. This is fine for films that may not make it to wide audiences. I still think that theaters are an integral part of the movie experience and in some cases very necessary. Without theaters, I would not have so many fond memoreis or be writing this piece. 

What are your thoughts on this news? Are you on the side of theater owners or the studios?