Late last year it was reported that Apple was in talks with major Hollywood movie studios to bring movie rentals to iTunes just two weeks after they hit theaters. Today, Warner Bros. CEO Kevin Tsujihara said that there has been a lot of progress made on this new streaming service. Variety has the quotes below.
“We’re making a lot of progress,” Tsujihara said during a call with analysts on Wednesday, adding, “We’re aggressively working with exhibitors to talk about models that will grow the market instead of cannibalizing the market.”
“Part of the reason that’s driving this is consumers and the economics of the film business,” Tsujihara explained.
“The middle of the market in the theatrical business has gotten extremely tough,” he noted, arguing that offering some movies in homes earlier would “change the economics of adult dramas.”
“It’s about giving consumers what they want,” he said. “If we don’t give it to them, they’re going to go to pirated versions.”
Tsujihara didn’t offer any specifics, but Variety’s sources say that one possibility being discussed is offering movies for $50 about two weeks after they open in theaters. The rental would be available for 48 hours. That might not make sense for a single person or a couple, but for a family of four that would be a great deal.
It’s unclear if Warner Bros. will be offering all of their movies this way, or if it’ll just be their smaller, non-superhero movies. Still, it’s cool to see Warner Bros. leading the way for this new business model.