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Studios bet you are Tweet Share this Email Print Related News Netflix CEO Hastings ends Qwikster before it starts Mon, Oct 10 2011 Robot flick "Real Steel" wins weekend box office Sun, Oct 9 2011 Disney's Iger to leave CEO post in 2015 Fri, Oct 7 2011 UK studio tour aims to conjure Harry Potter magic Mon, Oct 3 2011 "Dolphin Tale" jumps to top of movie box office Sun, Oct 2 2011 Analysis & Opinion 11 business lessons Steve Jobs taught me What happens if AG mortgage deal falls through? Related Topics Entertainment » Fashion » Technology » Film » Media » By Lisa Richwine LOS ANGELES | Mon Oct 10, 2011 5:30pm EDT LOS ANGELES (Reuters) - Hollywood is making a major bet this coming holiday season that consumers will buy movies, instead of renting, and view them on the go. Facing the steady decline of physical disc sales, studios from Warner Bros to Sony will launch their UltraViolet cloud-based movie storage -- or "digital locker" -- service. The studios are making a push to jump-start movie sales by attracting consumers to the cloud. The new digital lockers keep purchased copies of films on remote servers for viewing any time on various devices, a move to make movie ownership more appealing. Renting movies, far less profitable for studios, has dominated the home entertainment scene since Netflix Inc made unlimited monthly rentals cheap and convenient. Starting this month, consumers can buy the first film discs offered with UltraViolet, a format designed to allow instant streaming or downloading on devices ranging from videogame consoles to tablets and Web-ready televisions. Walt Disney Co, the only major film studio not backing UltraViolet, plans to kick off a similar option in the coming months called Disney Studio All Access. With a "buy once, play anywhere" message, studios hope consumers see more benefits to owning movies. Backers are pitching flexibility for multiple devices, the promise of owning rights to a movie for a lifetime, and the advantage of a cloud-stored copy not hogging hard-drive space. UltraViolet offers "more value for digital ownership. You can stream wherever you are," said John Calkins, executive vice president of global digital and commercial innovation at Sony Pictures Home Entertainment. PRESERVATION MODE But will consumers embrace the idea, or has renting movies become too ingrained as the top choice for home entertainment? While renting remains more popular than buying, interest in digital lockers as a movie-storage option has increased in the past year, according to a recent survey by accounting and consulting firm PwC. That likely stems from Apple Inc's plans to offer cloud storage for music. "Consumers are starting to understand the benefit of storing other types of content in the cloud," said Matthew Lieberman of PwC's entertainment, media and communications practice. Others are not sure cloud storage of movies will take off. Apple sells movies through iTunes and has not backed UltraViolet, a fact some industry analysts said would hurt adoption. Ownership also remains a tough sell now that consumers can stream rented movies any time to a wide range of Internet-connected devices, which has caused a steady march downward for physical movie disc sales. "We are in a preservation game," said James McQuivey, media technology analyst at Forrester Research. "We are trying to preserve an eroding base of DVD and Blu-ray spend. I don't see any way in which this is going to reverse this slide." To be sure, digital lockers are in their early days. Three of Hollywood's major studios have announced titles that will come with an UltraViolet option. Time Warner unit Warner Bros is selling DVD and Blu-ray discs with UltraViolet rights for adult comedy "Horrible Bosses" starting on Tuesday and superhero flick "The Green Lantern" beginning Friday. Sony Corp jumps into the mix in early December with comedy "Friends with Benefits" and family film "The Smurfs" as the holiday shopping season gets in full swing. Also in December, Universal Pictures will offer an UltraViolet option with sci-fi Western "Cowboys & Aliens." Paramount and 20th Century Fox have signed on to UltraViolet but not yet announced films for the format. Mark Teitell, general manager of the consortium that developed UltraViolet, said the initial titles are "really the beginning phase of this. It will be a ramp up." Discs of Walt Disney and Pixar films will start coming with Disney Studio All Access rights in the next few months, said Lori MacPherson, executive vice president of global product management at Walt Disney Studios. But films from Disney-owned Marvel Studios are not currently part of the effort. Cloud storage "gives the benefit of ownership without the issues of long download time, storage constraints and the lack of interoperability," MacPherson said. "It will be a game-changer for digital ownership," she said. (Reporting by Lisa Richwine; editing by Matthew Lewis, Bernard Orr) Entertainment Fashion Technology Film Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) 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