Billionaire Sean Parker's plans to bring movies to your home as soon as they release in theaters has hit new roadblocks.After receiving praises for "Screening Room" from directors and producers Steven Spielberg, Ron Howard, J.J. Abrams, and Peter Jackson, as well as Hollywood studios, the buzz for the startup has started to wane.
From a report: Though Parker and cofounder Prem Akkaraju have promoted the company in the last two years at CinemaCon, it's gotten little traction due to a naivete of the industry, competitors, and studios' and theater chains' decade-long discussion about how to move forward on Premium VOD (PVOD) (alternative source), Business Insider has learned.
"Everything you've heard in the press about studios and theaters wanting to explore a PVOD window, nothing about that revolves around Screening Room," a source close to the talks told Business Insider.
Screening Room's main pitch to studios and exhibitors has been that it can bring added revenue to all sides of the equation. Out of the proposed $50 rental fee, 20% would go to the movie's distributor, and a participating theater chain would get up to $20 of the fee, plus each customer receives two tickets to see that rented title at their local theater. Screening Room would take 10% of each fee.
Sources told Business Insider that all of the bells and whistles Screening Room is selling don't matter until the studios and theaters can agree on a Premium VOD (or PVOD) window. Industry players don't want movies to be available on PVOD simultaneously with theatrical release dates because the first two weeks of a theatrical run are still when studios and exhibitors get a majority of a movie's income.