As a movie enthusiast with a wallet that seems to shrink by the day, I must say I find the recent surge in movie rental prices quite perplexing. With my days of frequenting the grandeur of IMAX theaters long behind me due to the ever-escalating costs, the idea of paying nearly the same price to watch a film at home feels like salt being poured into an already gaping wound.
It’s noticed that the cost of renting movies has gone up recently. Movies such as “The Wild Robot“, “Alien: Romulus“, and “Deadpool & Wolverine” are now available for rental and can be streamed at home, despite some of these films still being shown in theaters and even making it to the top box office list. However, the fee to rent a movie is almost as high as the cost of going to the cinema in certain countries.
IndieWire points out that new releases such as “The Wild Robot” and “Alien: Romulus” can be rented for $24.99, which is $5 higher than the previous industry standard of $19.99. This equates to a 25% rise in the price for Paid Video on Demand (PVOD) titles. This increase could be due to studios still earning profits from films that are currently playing in cinemas. As per the report, studios receive around 80% of the rental cost for a PVOD film after a small fee, so this price hike means an additional $4 in profit for them compared to the previous pricing.
For the initial two weeks after a movie’s theater release, studios usually pocket around 60% of the ticket sales, while cinemas take home approximately 40%. However, as time passes, the percentage that theaters earn from each ticket rises, motivating studios to launch films for rental earlier because they can keep 80% of those earnings. Releasing movies on Premium Video On Demand (PVOD) could potentially generate more income for studios, but charging $24.99 might help them avoid upsetting theater owners too much. This is because the cost to rent and the price of admission in certain regions are now equal, which means that theaters aren’t being undercut by this pricing strategy.
A Ramification of the COVID-19 Pandemic
Since the COVID-19 pandemic closed theaters, there’s been a significant reduction in the time between a movie’s initial theater release and its Premium Video On Demand (PVOD) and digital release. In July 2020, AMC Theaters struck a deal with Universal Pictures, enabling the studio to release their films on PVOD as early as 17 days after they premiered in theaters, including three weekends. This arrangement appears to still be in place, as the film The Wild Robot, distributed by DreamWorks Animation (a Universal Pictures subsidiary), became available on PVOD three weeks following its theater debut. Many other studios have followed suit, releasing their films on PVOD ahead of schedule, even if they’re still thriving at the box office. For instance, Beetlejuice Beetlejuice was made available for rental on PVOD on October 8, 2024, a mere 33 days after its theatrical opening and during its box office dominance. Despite continuing to perform well at the box office, Beetlejuice Beetlejuice now generates more revenue for Warner Bros. through PVOD rental than it does from an extended run at the box office.
As a cinephile, I’ve noticed that rental prices for premium video on demand (PVOD) films often drop significantly within two to three weeks before their physical media release or streaming debut. For instance, the current $19.99 price tag for “Twisters” is likely to fall before it becomes accessible on Peacock starting November 15, 2024. Similarly, the $24.99 rental fee for “Deadpool & Wolverine” might decrease when the film hits Disney+.
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2024-10-28 03:33