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Big-screen bosses fight shrinking DVD window

Executives from top movie theater chains Wednesday dismissed calls to shorten the period between a film's release on the big screen and on DVD, saying it would be harmful to studios, theaters and consumers.
/ Source: Reuters

Executives from top movie theater chains Wednesday dismissed calls to shorten the period between a film's release on the big screen and on DVD, saying it would be harmful to studios, theaters and consumers.

Some studio executives, including Walt Disney Co. Chief Executive Robert Iger, have called for faster DVD releases to combat rising piracy over the Internet, amid slowing sales of DVDs and a U.S. box office slump.

But executives from Regal Entertainment Group, the world's largest movie theater chain, and National Amusements Inc. disagreed with a narrower theatrical window — the time between when movies are released in theaters and subsequently on DVD.

"Shrinking windows is bad for business and I mean everybody's business," said Shari Redstone, president of privately held National Amusements, at the Bank of America Media, Telecommunications and Entertainment Conference.

National Amusements operates 1,500 movie screens around the world, some of which have been outfitted with express concessions, leather rocking chairs, live pre-show entertainment and other successful gimmicks.

She said offering a fuller, more entertaining experience to consumers not only generates more revenue, but protects the theatrical window.

"We need to be focused on bringing the wow factor back to the experience," she said. "Movies are meant to be seen in the theater."

Films, on average, move to the home video market about four months after their release in theaters, a timeframe that has been steadily shrinking over recent years and eroding the exclusivity theaters used to enjoy.

Disney's Iger has even suggested previously that the industry may need to release DVDs while films are still in theaters.

At Wednesday's conference, however, Lew Coleman, president of DreamWorks Animation SKG Inc., the maker of animation films like "Madagascar," came down on the side of theater owners.

"We pretty much agree with Shari," he said. "We're happy with the window structure as it is now and we won't put any pressure on changing that."

Regal Chief Executive Michael Campbell said calls for a quicker DVD release were overblown by the media.

"I think the hype is greater than the reality," he said, adding that he believed the studios agreed on the need to maintain a window, which he said shrank by just four days last year.

"I don't sense there is a reason for the window to collapse," said Campbell. "I think the studios know that."

National Amusements' Redstone, who is also vice chairman of CBS Corp. and Viacom, said the industry should even consider extending the period between when a movie is shown on the big screen and when it is available for home viewing.

"I do think that if we went back to the way the windows were before it would be better for everyone," she said. "I think people are actually starting to explore that option."

Still, she suggested studios and theaters needed to better cater to consumer needs. "We need to give the consumer a reason to leave the house, put down the iPod," she said.