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Movie studios close to pulling PVOD switch

Published 07/09/2017, 04:24 PM
© Reuters.  Movie studios close to pulling PVOD switch
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  • Movie studios are expected to give serious consideration to premium video on demand as profit margins continue to shrink. Though Disney (NYSE:DIS) pulled in $1.8B in studio EBITDA last year, the rest of the industy only accounted for about $1B, including painful losses at Sony (NYSE:SNE) and Paramount (VIA, VIAB).
  • If studios pull the PVOD switch, consumers will have the option of paying $30 to $50 for early access to certain movies.
  • Morgan Stanley (NYSE:MS) estimates Hollywood studios could bring in $2B in additional annual revenue, assuming a price point of $35 per premium rental. The firm sees a negative impact on exhibitors such Regal Entertainment (NYSE:RGC) and Cinemark (NYSE:CNK) due to a loss of traffic.
  • A possible wildcard in the PVOD mix is Netflix (NASDAQ:NFLX).
  • Now read: Netflix: Bar Is Set Low Ahead Of Earnings


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