Hollywood studios to start selling films online
April 3, 2006
LOS ANGELES – Hollywood studios will start selling digital versions of films such as “Brokeback Mountain” and “King Kong” on the Internet this week, the first time major movies have been available online to own.
The films can’t be burned onto a disc for viewing on a DVD player. Still, the move is seen as a step toward full digital distribution of movies over the Internet.
Six studios said Monday that sales will begin through the download Web site Movielink. The site is jointly owned by five of the seven major studios.
Warner Bros., Universal Pictures, Sony Pictures, Paramount Pictures, Twentieth Century Fox and MGM will offer some first-run and older titles on Movielink, a PC-only download service. New films will be priced similar to DVDs – between $20 and $30 – while older titles will sell for $10 to $20.
Sony and Lionsgate also said they will sell films through the CinemaNow site.
Films from The Walt Disney Co. will not be available, although the services say talks are ongoing.
“Digital delivery hasn’t arrived until the major studios allow home ownership, and now they have and now digital delivery is very real,” said Jim Ramo, chief executive at Movielink.
Studios will sell some new films online the same day they become available on DVD. Most films will be made available within 45 days.
Studios began renting films online several years ago as a way to combat illegal downloading. Movies have been available through the Internet 30 to 45 days after hitting video stores, with rentals lasting just 24 hours for viewing primarily on computer screens.
Digital delivery of video grew rapidly after Apple Computer Inc. began selling episodes of TV shows through its iTunes online store last October.
This year, devices powered by new Intel computer chips and TV service delivered over the Internet will allow more consumers to watch Web video on their TVs instead of their computer screens, a key factor in downloading to own, analysts said.
Studios are being cautious about selling films online in part because DVD sales produce more profit than box office receipts.
Studios are also preparing for the day when major retailers such as Wal-Mart Stores Inc. and Amazon.com begin offering their own movie download services.