DD Nows the time 2016 to FIRE ALL GUNS AT ONCE !!!

DD Nows the time 2016 to FIRE ALL GUNS AT ONCE !!! A simultaneous release would get many people at once.... What’s unclear, however, is whether box office receipts will be impacted at all by the simultaneous release of movies to the theater, DVD, cable and streaming Internet services. “There is a basic cannibalization question,” says Turow. According to Hsu, the effects of a simultaneous movie release in various distribution channels would largely depend on pricing models.

( For instance, studios could charge higher prices for a first-run film at home. Whitehouse paints a scenario where a consumer at home may pay $50 to view a first-run movie. At that price, the pay-per-view option may equal the cost of bringing the family to a movie theater. Other consumers would go to theaters to get a more communal viewing experience and perhaps perks such as a 3D experience. Still others would wait to see the film for a lower price later.)



Studios could compress or eradicate the movie release window and keep all parties happy if they could get the price discrimination strategy right — that is, charge different prices for the same item based on demand. “The consumption patterns and whether they change will depend on the entertainment bundle provided and the pricing,” says Hsu. “The industry could deploy a price discrimination strategy based on the window [during which] consumers view the movie.”

http://knowledge.wharton.upenn.edu/article/re...-releases/

For instance, studios could charge higher prices for a first-run film at home. Whitehouse paints a scenario where a consumer at home may pay $50 to view a first-run movie. At that price, the pay-per-view option may equal the cost of bringing the family to a movie theater. Other consumers would go to theaters to get a more communal viewing experience and perhaps perks such as a 3D experience. Still others would wait to see the film for a lower price later.

According to Wharton marketing professor Eric Bradlow, consumers will ultimately demand first-run content in multiple distribution channels. “Consumers get utility from watching content with others. Consumers get utility from watching content on a big screen. Consumers get utility from watching content when it is first out,” says Bradlow. There is a marketing upside that should be taken into account, too, he adds. “A natural consequence of simultaneous release is greater awareness and hence greater penetration of the product.” Typically, movies have a marketing campaign when the film hits the theaters and when they go to DVD. “The movie industry should be more focused on growing the market,” says Fader. “The vast majority of Americans don’t consume a movie. A simultaneous release would get many people at once. The way to do that is to have a well integrated distribution and campaign. Fire all guns at once.”