The exclusive theatrical distribution window currently enjoyed by cinemas for first-run movies will eventually close - this we are (or should be) aware of. However, Cinedigm thinks it has come up with a novel approach for cinemas' to share in a movie's distribution spoils.This new (and potentially disruptive) revenue distribution concept is extremely interesting, and Cinedigm (which wants to transform movie theatres into digitally networked entertainment centers) is putting its money where its mouth is. Last month, Cinedigm acquired independent content distributor New Video Group for $14 million, and plans to have New Video distribute 18-24 indie films in 2014. These films would be released using the new down-stream revenue sharing concept to entice exhibitors to run these releases.
The move to day-and-date release of movies across all media platforms has been forewarned by CMG for several years and is driven by the 'can't stop' nature of digital technology, thus making it imperative that movie theatres get their 'game on'.
What makes Cinedigm's concept so interesting is that if a means can be worked out whereby exhibitors have the grosses they lose by having their exclusive distribution window shut replaced with a sharing of down-stream revenues - this would be a huge game changer for the cinema exhibition industry.
I think, what I am dubbing, a 'cascade of content' would be unleashed for cinemas. Envisioned would be a cinema exhibitor perusing a weekly on-line 'content menu' containing a myriad of selectable content which would be coupled with the opportunity to share in that content's full revenue stream.
Ah ..... the possibilities the digital domain offers are endless and unimaginable.
I look forward to your comments
Best and Happy Movie Going!
Jim Lavorato
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