“the model “Makes very little sense as it risks millions to make pennies.” “This proposal will give pirates a pristine digital copy early, resulting in millions of lost revenue to piracy, while at the same time selling a very limited number of units. Only billionaires can afford $500 per movie.”The steep price has been met with mixed reactions in Hollywood. Some executives question whether it will be possible to build a market beyond a few thousand users. (Prima says it plans to install its systems in 250,000 homes within five years.) Others say the high price would create an exclusive, super-premium niche market without cutting into existing sources of revenue.
“While this is a niche market, there is a chance for significant upside,” says Adam Fogelson, chairman of Universal Pictures, which holds a minority stake in Prima. “And precisely because it is a niche market, that upside should come without harming any of our existing partners or revenue streams.”Other studios like Sony Pictures have offered home movies on its Bravia TV in between the time movies are released in theaters and DVD releases. After reading this you are probably saying, you know, those theater prices aren’t so bad after all.
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