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Hollywood Adjusts to Low Cinema Numbers

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Hollywood studios are beginning to change their opinions of the video broadband services and the movie download services mainly due to the altering habits in the movie watching public. Movie cinema attendance has fallen and with it the revenue that studios want.

Movie going habits first changed with the VHS and later the DVD markets. Cinemas have begun to notice that many customers are waiting to rent or purchase DVDs rather than go to the theater. And now even DVD rentals and purchases have started to fall.

These trends and the reasons for them are discussed in a recent USA Today article. The article lists the main reasons why movie goers are attending less movies.

Top reasons people didn't see movies in theaters (on a scale of 1 to 10, with 10 being most significant):

  • Movies not very good/did not meet expectations 6.7

  • Ticket prices too high 6.4

  • Concessions too expensive 5.7

  • Lifestyle/family changes 5.6

  • Rather wait for DVD 5.0

  • Too many ads before movie 4.8

  • People talking 4.2

This has recently led more studios to make their films available to video download services and to the creation of more video download services. For the online download user there exists several movie download and download to DVD options. CinemaNow and Movielink have been making more deals with studios for movies and television content. Both allow DVD burning and are priced about the same. We recently posted about Vongo, which is a subscription service that allows pay-per-view but not DVD burns.

Nielsen's Adrienne Becker comments, "As these distribution channels evolve, they could help satisfy movie lovers who have "an increasing lack of flexibility in (their) schedules and (who see) making a commitment to a leisure activity, in some ways, becoming anachronistic."

This again is just one more reason for Hollywood to change their views on access to entertainment. The current deals are encouraging but the studios should take more risks in adapting to technology.

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