DirecTV have announced the launch of their new premium video-on-demand service for new movies (from producers Fox, Sony, Universal, and Warner Bros.) for subscribers. The service was rumored back in April, but many thought it may have been an April Fool’s prank.

But it begins with the relase of Just Go With It on Tuesday, allowing DirectTV subscribers (who owns an official HD-DVR recorder), to have purchase a 48-hour download rental (before removal from the hard drive) of a movie (in 1080p and Dolby 5.1 Surround Sound) all for the meager fee of $29.99.

The films are also being limited to one new feature each fortnight, with recent theatrical releases The Adjustment Bureau, Cedar Rapids, and Hall Pass all in line for DirecTV release.

This may seem like a pretty bad deal for the customer in terms of price and service, and it probably is, but the satellite TV provider seems to have worked its way through a number of legal loopholes just to get this far, and in the process infuriating a nation of cinema owners in the process, as theatres across America plan to protest against the studios for their future potential loss of business, with the traditional 90/120-day gap between cinema and home release of a film (the ‘theatrical window’) being cut to 60 in the case of this deal.

DirecTV spokesman Robert G. Mercer said of the controversial deal for his company: “In terms of how all of us consume TV, video and film products, the world continues to change and we constantly have to ask ourselves how we as a company are going to innovate to find new ways to engage our customers. Home Premiere is one way we are capturing that engagement. This is [for] the type of customer who is willing to pay more to see a new movie in an earlier window.”

Theatres across America are planning to retaliate what they feel to be a ‘betrayal’ by the studios by limiting their movie’s trailers and in-building signage.

While VOD is an emerging market for new movies (with the income from this source recorded at $1.8B last year), it is the first time that a VOD release will come so far before the DVD/Blu-ray release, as opposed to the same time or later. Although the ‘first opportunity’ service is a one-time only for subscribers (after a film is rented, it is no longer available until after the theatrical window (at a much shorter price)), it is believed that it is against the ideals of the relationship with studios for the service for any extra release during this ‘limbo period’ for movies.

Patrick Corcoran, a director of the National Association of Theater Owners, lead the complaints of his furied group: “NATO has repeatedly, publicly and privately, raised concerns and questions about the wisdom of shortening the theatrical release window. We would expect cinema owners to respond to such a fundamental change and to re-evaluate all aspects of their relationships with these four studios.”

Amy Miles, CEO of Regal Entertainment Group (one of the largest cinema chains in America), added her frustration at the issue: “Regal believes that a healthy theatrical window is important to the entire movie industry and we have expressed our concerns to the studios. It is simply not in Regal’s best interest to utilize our resources to provide a marketing platform for the release of Premium Video on Demand movies.”

Studio executives argue that Premium VOD is no bigger a thread to theater revenues than regular airings at home release, with studios likely to be selective over their VOD releases on business purposes (popular titles will be saved for a full DVD/Blu-ray release to heighten anticipation), while it is believed that the high initial prices for Premium VOD will ‘counteract the product devaluation’.

DirectTV spokesman Mercer summarised: “As the studios have said, it certainly builds value for the title in the eyes of the consumer. Also, we see it as beneficial for the theaters because it does create more buzz around the title. There’s an additional promotion for that feature via this service, and that’s a good thing for all parties.”

Could DirecTV have found a perfect go-between for the release schedules of feature films, or will it just prove to be an annoying disturbance to a well-run system?

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