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What ‘The Interview”s VOD Success Says About the Future of the Business Model

Fast Company‘s Nicole LaPorte explores what The Interview‘s $15-million four-day VOD haul says about the future of the business model for studios.

She writes, “While The Interview makes a strong case for a digital release, the circumstances surrounding it were so unusual that it’s hard to use it as a reliable model. An insane media blitz ensured that no sentient human being was unaware of what it was and when it was coming out. Security concerns—threats of violence by Guardians of Peace, as the Sony hackers are known—made seeing the movie (which also came out in 331 theaters) in the comfort of your living room a more enticing idea than seeing it in your local cinema. The low price point didn’t hurt, either—it cost $5.99 to rent the movie on services like iTunes, Xbox and YouTube; that’s a lot less expensive than a ticket at a movie theater. The biggest hindrance to converting day-and-date theatrical releases to VOD releases, of course, is theater owners, whose livelihoods are threatened by digital distribution—they are fighting the issue tooth and nail.”

Read the full story here.