April 12--REPORTING FROM LAS VEGAS -- Napster founder Sean Parker's idea to bring theatrical movies to the home earlier has been the talk of the movie industry in recent weeks. But John Fithian, chief executive of the National Assn. of Theatre Owners, called the yet-to-be-launched service a huge "distraction."
The leader of the cinema trade group defended the movie theaters' and studios' traditional way of doing business during Tuesday remarks at the CinemaCon film industry conference in Las Vegas.
Parker's proposed home-video service, called Screening Room, would give users access to films the day that they're released in theaters, for $50 each. That has upset theater owners who say it would cannibalize ticket sales.
Fithian, in a news conference, expressed frustration with how Parker's concept has dominated the conversation at the convention, saying that the model should not be forced on the industry by a "third party."
"The issue of the Screening Room is a serious distraction from this week," he told reporters. "It's up to the exhibitors and the distributors to decide the future of windows."
The comments followed Fithian's statements in his speech to movie business leaders at Caesars Palace, in which he made a thinly veiled reference to Screening Room. Fithian noted that the issue of the theater's traditional business model had been a hot topic in the news lately "for all the wrong reasons."
Fithian said the traditional so-called window between theatrical release and in-home availability "makes new movies into events" that leads to greater revenue from DVD and on-demand.
"Success there establishes value and bolsters revenue in downstream markets," he said.
Fithian acknowledged that consumer demand and tech innovations may force theater owners to open up to more flexible ways of delivering movies on online stores earlier than usual.
"More sophisticated window modeling maybe needed for the growing success of a modern movie industry," he said. But, he argued, those models should be decided on by exhibitors and distributors in company-to-company discussions. He did not give specifics on what such alternative models would look like.
Christopher Dodd, head of the Motion Picture Assn. of America, also noted the transformation of digital technology for entertainment. But Dodd, whose lobbying group represents the major Hollywood studios, touted the value of preserving the theatrical business model, without singling out Screening Room.
"Despite the noisy suggestions otherwise, the cinema provides a unique and powerful experience that just cannot be recreated," Dodd said in a speech at Caesars Palace, reiterating past remarks about the state of the industry.
Dodd said at the news conference, however, that the MPAA would meet with the team behind Screening Room, which had reached out to him.
"I want to hear what they have to say," Dodd said.
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