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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared British pair faces jail time in Dubai over kiss 14 Mar 2010 Erin Andrews peephole stalker lands in jail 15 Mar 2010 Recession left "walking wounded" workers: study 12:08am EDT HBO puts "The Pacific" online 15 Mar 2010 UPDATE 2-Aftershock hits off coast of Chile, no damage 12:15am EDT Google sees mobile ad rates passing PC rates 15 Mar 2010 Nurses' union: Care does not include sex 11 Mar 2010 Casino shares dip ahead of Macau official's speech 15 Mar 2010 Facebook to open office in southern India 15 Mar 2010 UPDATE 1-Google sees mobile ad rates passing PC rates 15 Mar 2010 Hollywood braces for talks on DVD releases Alex Dobuzinskis LOS ANGELES Mon Mar 15, 2010 9:56pm EDT Related News Hollywood braces for talks on DVD releases Mon, Mar 15 2010 Hollywood,theaters brace for talks on DVD releases Mon, Mar 15 2010 A scene from ''Alice in Wonderland''. Credit: Reuters/Walt Disney/Handout LOS ANGELES (Reuters) - Top Hollywood executives and theater owners will seek this week to resolve a brewing dispute over DVD release schedules, a contentious question as the industry grapples with shifting viewer patterns and the advent of high-tech home entertainment. Entertainment | Film At the annual ShoWest convention in Las Vegas, starting Monday, studio moguls and the country's largest theater chains hope to reach an understanding on the so-called "window" between a movie's screening and when its DVD is released. The Walt Disney Co started the ball rolling when it announced it would push up the DVD release of its "Alice in Wonderland" by four weeks -- prompting threats by some theater chains to boycott the hugely marketed film. Analysts say Disney and other studios want to reduce marketing expenses, adapt to audience's increasing need for on-demand content and boost flagging DVD sales. But theater owners, already facing the roll-out of 3-D TV as a potential competitor, have reacted nervously as studios such as Disney and Time Warner Inc's Warner Bros start to tinker with DVD release schedules. Theater owners are fighting to protect ticket sales, which have decreased to 1.42 billion in 2009 for the United States and Canada from 1.57 billion in 2002. Chains such as Regal Entertainment Group and AMC Entertainment Inc are fearful that, if studios shorten the window, they could lose even more customers as audiences wait to watch films at home. Matthew Harrigan, an analyst with Wunderlich Securities, said theater owners fear losses ahead. "This is nothing right now, but people see a foot in the door. That's what got people spooked," Harrigan said. Already, Warner Bros, is considering shortening the release window for its adventure movie "Legend of the Guardians" due out in September, said a source familiar with the situation. Peter Guber, chairman and chief executive of Mandalay Entertainment Group, said studios are not likely to budge from their demand that theater owners accept shortened windows. "We are not in an evolution anymore, we're in a revolution, and revolutions can be lethal," said Guber, former chairman of Sony Pictures Entertainment. Representatives for Regal and AMC declined to comment. DEAL IN LIMBO Before Disney upset theater owners by going public about moving up the DVD release on "Alice," studios and theaters had reached an unwritten agreement to limit moving up the DVD release to two movies per studio and only in the spring and winter, said a source familiar with the situation. That unwritten agreement is now in limbo, but sources said that ironing out the dispute over release windows will be high on the agenda at ShoWest, which runs through Thursday. In a speech at ShoWest on Monday, Michael Lynton, chairman and chief executive of Sony Corp's Sony Pictures Entertainment, said he will always view the theatrical run as the most important window, but that the industry must adapt. "It is clear from the changing economic model of our industry that we're going to have to reevaluate the way in which the current window structure operates," he said. "To meet audience demand for entertainment when and where they want it, and to keep ahead of the pirates who will fill any void we leave, we've all got to be open to experimenting with new and different windows, taking advantage of new and different technologies." Studios want to shorten the theatrical window in part to offset rising marketing costs, Guber said. If the DVD comes out earlier, customers are more likely to remember the advertising campaign from when the movie hit theaters. Also, studios are reacting to piracy because the longer consumers wait to get their movie at home, the more likely they will turn to illegal copies, Guber said. Movie studios like the home entertainment market because they avoid having to split revenues with theaters, he added. Just 10 percent of the U.S. and Canadian population goes to the movies at least once a month -- and 33 percent of the population does not go at all. But the average American watches one movie a week on DVD, according to research firm NPD. Thus, DVD release dates are creeping up. The National Association of Theater Owners reports the average theatrical window for major movies shrank to 4 months and 14 days in 2009 from 5 months and 19 days in 2000. Meanwhile, "Alice" has made $430 million at worldwide box offices in less than two weeks since its March 5 debut. A source at one Hollywood studio who declined to be named said studios can use that strong showing to argue moving up DVD releases does not hurt theaters. "What do the theater owners lose from 'Alice' announcing they would go to DVD in three months. What did they lose? Nothing," the source said. (Reporting by Alex Dobuzinskis; editing by Edwin Chan and Andre Grenon) Entertainment Film More from Reuters Fed seen renewing low rates, extended period vow WASHINGTON (Reuters) - The Federal Reserve is expected to hold interest rates near zero at a meeting on Tuesday and renew its pledge to keep borrowing costs very low for a long time, but could note a brightening economic picture and hint at being closer to dropping the vow. Record number of Chinese unhappy over inflation Toyota casts doubt on "runaway" Prius claim | Video Sen Dodd boosts Fed in new financial reforms | Video China warns Google to obey rules even if it pulls out Lehman Brothers' whistle blower was ousted: report » More Top News China building a debt mess There's a darker side to China's relentless investments: vast sums borrowed by local governments and plowed into projects that will never pay for themselves. Full Article Wen wraps populist agenda in poetry China name-calling a costly move Coming Up Tuesday, March 16: A live chat with Michael Lewis Have a question for Michael Lewis? Submit them here. The author of "The Blind Side" and "The Liar's Poker" will be joining us March 16th to talk about his new book. Live Coverage Felix Salmon: "The Big Short" Rolfe Winkler: Lewis on his book Economy © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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