NBCUniversal Breaks Theatrical Window, Will Make Movies Available On Demand Immediately

Big news for Little Screens #1: NBCUniversal is moving upcoming/recent movie releases directly to on-demand.  Each rental will cost $20 for a 48-hour rental period.

The movies include:
1) Trolls World Tour
2) The Hunt
3) The Invisible Man
4) Emma

Standard theatrical release flow according to LightShed Partners:
1) Theatre – 0 – 2.5 months
2) DVD/VOD/rental – 3 – 6 months
3) Premium pay-TV (HBO, etc.) – 6 – 24 months
4) Network TV – 24 – 36 months

Quick math on pay-per-view potential for Trolls World Tour:
1) Domestic box office revenue for Trolls (2016) – $154M
2) Average ticket price – $8.65
3) Estimated # of tickets sold – 17.8M
4) PPV rental price for Trolls World Tour – $20
5) PPV rentals to reach Trolls (2016) box office – 7.7M
6) Viewers/HH to create value over tickets – 2.3

Quick math on the largest PPV event in U.S. history (Mayweather/Pacquiao):
1) Total revenue – $400M
2) PPV purchases – 4.4M
3) AVG purchase price – $91

Smart: The LightShed team broke down how many PPV rentals a major release (Star Wars, etc.) would need to generate comparable profit to the box office.

Why this matters: Last weekend’s box office total was the lowest since 1994, and Wall Street has responded by hammering cinema stocks.

Big news for Little Screens #2: Frozen 2 is arriving on Disney+ three months early!

More #1: Regal Cinemas Closing All U.S. Theaters Due to Coronavirus

More #2: Hollywood Could Take $20 Billion Hit From Coronavirus Impact

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