Parks Associates Blog

Saturday, September 25, 2010

Time Warner Cable may a Compressed Window $20-$30 VoD in 2011

From AP and The Boston Globe,Time Warner Inc.'s chief financial officer John Martin said Thursday that early next year the company will likely test letting people pay $20 or $30 to watch new-release movies at home within a month or two of their debut in theaters.

No question the demand is there, even at these price points, as we tested in previous surveys. Demand will be particularly significant in households with children, where the cost of going out to the movies, plus the babysitter, are going to be high. One significant problem the cable operators face is serious pushback from the movie theater operators, who have been asked to make significant investments in both digital cinema and now 3D projection, and who probably feel like the rug is being yanked out from under their feet.

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