News corp. exploring high definition film rentals from Fox

March 6, 2006

As a lot of us are trying to get our heads around the investment in the next generation of high def content, News Corp. is thinking of letting us rent said material rather than buy it, for just 25 to 30 dollars a pop. Delivery will be downloaded across cable and satellite TV, 60 days after theatrical release.

Speaking during the second day of the annual Bear Stearns Media Conference in Palm Beach, Fla., in a session available via webcast, News Corp. president and chief operating officer Peter Chernin said Tuesday the conglomerate has been "talking to the cable operators and satellite operators about the idea of a 60-day, high-priced high-def rental" offer costing $25-$30.

He later repeated the $25 price range as a possible model in a hint that this could be closer to the final price point but didn't specify what kind of revenue split was likely for the HD-to-home product.

At this year's Consumer Electronics Show, Chernin first mentioned that Fox was working on a plan for HD-to-home video on-demand offers 60 days after theatrical releases to establish a new HD window between theatrical and DVD runs amid a recent trend of shrinking distribution windows. However, pricing and other details of the planned HD service had not been clear.

I guess it is only natural that high definition would be a "high price" product, but will the market bear such a price? News Corp. should know, their business is distributing a wide variety of entertainment content. They feel that folks that live in say, New York, that are seeing 10 dollar box office tickets, may find that this is a frugal way to see the films and from the comfort of their own homes. If they have the financial resources to avail themselves to equipment suitable to view said content though, they may not be that concerned about movie ticket prices.

However, this high definition situation is becoming more bizarre by the minute. Even if a film is released a couple months after the box office debut, we have to wonder how many will opt for a 25 dollar rental. Let alone one that must be downloaded. We also have to ask ourselves, is the viewing experience of 1080i or 1080p, that attractive a product to tempt enough of a market share to support such a venture? News Corp. seems to think so! Time will tell I suppose.

Source: The Hollywood Reporter