Tuesday, April 29, 2014

The Future - Movies

Jeffrey Katzenberg (CEO of Dreamworks) is predicting a major change is afoot in the movie industry. Within 10 years all movies will only run 3 weekends in theaters and then be available for viewing through the internet. Why only three weeks? Because 98% of movies make 95% of their income from the first three weeks of being released in theaters. So there is not much of a need to keep movies in theaters longer than that. The biggest change will be how soon movies will be available on the internet for viewing. Today it takes a few weeks (and maybe months) before movies are available for purchase or rent through the internet after they have had their theatrical run. In the near future, movies will be available immediately after they end their three weekend theater run (as in the day after). Katzenberg also is predicting that the price for movies on the internet will vary depending on the size of the screen it will be displayed on. For a movie sized screen the price will be $15. For a large screen TV it will be $4, and for a smartphone it will be $2. I think he is right (he should know he is one of the biggest names in movie production). How will this affect movie production? Will more movies be produced? Will there be movies made for direct release to the internet (much like a direct to DVD release)? This is an interesting development. I wonder how it will affect other industries like music, TV, or cable?

What do you think?

http://www.fastcompany.com/3029827/most-creative-people/jeffrey-katzenberg-predicts-that-future-moviegoers-will-pay-by-the-inch?partner