Disney, Sony Test On-Demand Streaming of In-Theater Movies

by William White | June 24, 2013 12:35 pm

Disney (DIS[1]) and Sony (SNE[2]), in an effort to combat piracy, are offering on-demand streaming of movies that are still in theaters — in South Korea, that is.

Disney and Sony are using South Korea to test whether this new way of releasing movies makes sense, as the country has the eighth-largest film market in the world[3].

This is the first time major American studios have offered anyone the ability to either buy a ticket or stream the movie to their home, reports the Wall Street Journal[4]. Other Hollywood studios are said to be watching both Sony and Disney while the companies test the format.

“It’s way too early to say if this will be a policy for any [Hollywood] studio or even a norm, but it seems to have potential,” a person close to testing told the Wall Street Journal.

If the new release format catches on, it could spell trouble for movie theaters, which have seen attendance decline by 15%[5] in the last 10 years.

Endnotes:
  1. DIS: http://studio-5.financialcontent.com/investplace/quote?Symbol=DIS
  2. SNE: http://studio-5.financialcontent.com/investplace/quote?Symbol=SNE
  3. the eighth-largest film market in the world: http://www.theverge.com/2013/6/24/4458644/disney-sony-on-demand-streaming-korea
  4. Wall Street Journal: http://online.wsj.com/article/SB10001424127887323836504578552521772173386.html
  5. attendance decline by 15%: http://investorplace.com/2013/02/not-all-movie-theater-stocks-are-winners/

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