Paramount offers theatres slice of digital sales to rush new Paranormal Activity to VoD
Paramount is looking to give US theatre chains a cut of the latest installment of the Paranormal Activity series' digital distribution in exchange for them shortening the movie’s exclusivity period to just a few weeks.
As the long-abided period of exclusivity comes under siege from prominent sources such as Netflix, with it debuting movies (in a small number of participating) cinemas and on its VoD service at once, Paramount is looking to test the waters with a similar scheme.
The studio has partnered with US theatre chains AMC and Cineplex for the release of Paranormal Activity: The Ghost Dimension – with the caveat that it will be available on selected video on demand platforms 17 days after theatrical showings wind down. In return, these chains will receive an undisclosed share of the VoD income.
The deal acknowledges the paradigm shift in the industry – consumers don’t want to wait for their movies to be available in the home. Furthermore, the prompt home release of the sixth installment in the franchise means only a single marketing push is required to bring it into the public’s eye.
Rob Moore, Paramount vice-chairman, likened the marketing tactic to an experiment in discussion with Variety: “We are making an investment in getting information, this is about the longer term health of how we distribute movies.
“The consumer is changing and we have to change as well.”
At the briefest mention of an earlier VoD release, theatres including Regal and Cinemark announced a boycott of the movie. As a result, it will be showed on a mere 1,400 US screens – more than half previous instalments mustered.
Moore later told The Hollywood Reporter: “We are not collapsing windows. We want the theatrical window to flourish.”
On the potential revenue loss from reduced theatre presence, Moore responded: “There is no question that we are going to do less theatrically, but I believe we will make it up digitally.
“This is about the long-term health of the business, so there is not this long period of time when a consumer can't watch a movie."