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Sony experiments with preview VoD window


Territories covered

North America
USA,

Author/s

Marie Bloomfield
Marie Bloomfield
Published: 13-Nov-09
Sony Pictures is to make animated feature film Cloudy with a Chance of Meatballs available for streaming on demand in HD (720p) exclusively via Sony Electronic's Internet-connectable devices up to four weeks before its launch on DVD and Blu-ray Disc (BD).

Customers that purchase a connectable Bravia TV or BD player and register it before 4 January 2010 will be entitled to a free 24-hour rental of the film from 8 December 2009. Consumers already equipped with connectable Bravia devices will also be able to rent the film at a cost of $24.95.

Our take...
The above strategy will make the film available on a VoD basis less than three months after its theatrical release (18 September), a decision which has reportedly resulted in several cinema chains threatening to pull the film. Sony has acknowledged retailers might also be concerned at the impact the exclusive preview VoD window could have on DVD and BD sales. However, since pirate copies of titles are now widely available online often months before their home entertainment release, the priority for the studios is to find a formula which will reinforce revenue overall. With total US consumer spending on physical retail business expected to fall by 10% in 2009, the studios have turned their attention to the rental model in an effort to reinvigorate the market. The preview VoD window is one such experiment: only available to Bravia customers, this is essentially a field study for Sony, but the $25 premium should at least offer a generous margin, comparable with wholesale new release prices for DVD and EST (electronic sell-through).

This is not the first time Sony's studio arm has made a film available 'over the top' via the corporation's connectable devices in advance of its home video release. In October 2008, Sony enabled consumers equipped with a Bravia internet video link module and compatible TV to stream Hancock (see link below). The VoD price was lower in that instance – $9.99 – but consumers had to have invested in the $300 peripheral to use the service, whereas latest Bravia devices have internet connectivity built-in. Sony has adopted a more aggressive windowing strategy this time; the VoD preview of Hancock was available three and a half months after theatrical and two weeks before home video release. Notably, Sony has also opted not to give away a BD copy of the film – under the previous initiative VoD customers received the Hancock BD upon release.

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