Sept. 7 (Bloomberg) -- News Corp.'s Twentieth Century Fox plans to offer high-definition digital sales of new movies two to three weeks before they come out on DVD and video-on-demand, a fresh bid to rekindle consumer interest in buying movies.
The venture, Digital HD, will begin with the release of director Ridley Scott's science-fiction thriller "Prometheus," Jim Gianopulos, co-chairman of Fox Filmed Entertainment, said today in an interview. Fox will offer the films for $15, he said.
Fox is shortening the time movies are in the so-called theatrical window, typically about four months, to encourage consumers to buy rather than wait to rent films at a lower price. The movies will be sold through most digital venues and can be stored online for play on a variety of devices. The studio consulted with theater operators to avoid a confrontation over the timing and price of the releases, Gianopulos said.
"This offers advantages to ownership that you've never had before," Gianopulos said. "The theater owners are less concerned about it because it's not a lot earlier."
The time between a movie's theatrical run and its release on home video varies from about 10 weeks to more than 16, depending on factors such as holidays and competition in the marketplace, Gianopulos said. Fox's new offering is within the general understanding between studios and theater owners, he said.
Online Storage
The films will be sold through most online vendors, including Apple Inc.'s iTunes, Wal-Mart Stores Inc.'s Vudu and Amazon Inc. With the offering, Fox also will join the Ultraviolet online storage system, an industry initiative that lets consumers, once they have purchased a film, store it online and gain access using any Web-linked entertainment device.
"Prometheus" was chosen to start the process because the director has a following of hard-core fans who want to own his movies, Gianopulos said. Also, science-fiction fans tend to be "digitally savvy consumers," he said.
"Prometheus," released in theaters on June 8, generated $351.3 million in worldwide ticket sales, according to researcher Box Office Mojo.
Studios' DVD sales have diminished with the advent of low- cost rental and streaming services including Netflix Inc. and Coinstar Inc.'s Redbox. Sales declined to $18 billion last year from a peak of $21.8 billion in 2004, according to the industry trade association Digital Entertainment Group.
Fox will continue to sell high-definition versions of films on Blu-ray discs, a format that offers better display on large television screens, Gianopulos said. The studio will continue to market DVDs as well.
"This doesn't displace Blu-ray," he said.
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