Sony joins others in growing same-day DVD/VOD releases

DIGITAL: But studio is moving cautiously to avoid cannibalizing sales

By Jennifer Netherby and Marcy Magiera -- Video Business, 9/17/2009

SEPT. 17 | DIGITAL: Sony Pictures Home Entertainment is the latest studio to test simultaneous video-on-demand and DVD film releases. The studio quietly put Aug. 4 thriller Obsessed out day and date and plans four more simultaneous releases in the fourth quarter, Sony senior VP of strategic development Jason Spivak said during a panel at the Entertainment Merchant Assn.’s Digital Media Pipeline Tuesday.

Spivak didn’t say which films would be part of the trial. Sony also allowed VOD viewers a 48-hour watching period for Obsessed, double the usual 24-hour period and something other studios also have tested to drive VOD rentals. 

Sony joins Warner Home Video, 20th Century Fox and NBC Universal in releasing films on DVD and VOD day and date.

VOD distributors say that simultaneous releases significantly boost VOD transactions. VOD distributor In Demand has found that films released day and date with DVD sell 50% better on VOD than those released later. 

In fact, each of the top five VOD renters in the first half of the year had day and date releases, according to Rentrak. (See chart) They also were completely different titles than the top DVD renters for the same period.

Warner has been the most aggressive, releasing most of its films day and date on DVD and VOD since mid-2007. The studio cites trials with Comcast and Time Warner Cable that showed simultaneous releases boost VOD rentals without hurting DVD sales.

Last month, Sony’s executive VP of digital distribution Sean Carey told Video Business that the studio is moving more cautiously than others on day and date releases, saying, “We’re very concerned about rental transactions cannibalizing ownership transactions.”

Over the last few years, all studios have shortened the window between VOD and DVD, with the window for films not released day and date now roughly 30 days.

Lionsgate, which hasn’t released films day and date, has shortened its window to as little as 14 days for many releases.

Lionsgate president of digital Curt Marvis said earlier this month that the studio is doing its own research on the VOD window and watching how simultaneous releases perform for others.

“Ultimately, everyone knows all the studios will adopt a day and date position over time,” he said.

Top 5 VOD Titles in First Six Months of 2009