Theatrical-To-Video Interval Compresses Again In 2005, Says Kagan Research

Kagan Research estimates an average of 129 days from theatrical premier to video release in 2005, versus 144 days in the prior year.

12-Dec-05

The window between theatrical and video will shrink by 15 days this year, in comparison to 2004, due to piracy worries, a desire to accelerate revenue and attempting to catch more theatrical marketing buzz. Kagan Research newsletter MOTION PICTURE INVESTOR estimates the average is 129 days from theatrical premier to video release in 2005, versus 144 days in the prior year.  While the home video industry may not lament the shrinking windows, Kagan Research analyst Wade Holden believes the gap will stabilize at roughly the current 4.6 months window. ""If it shrinks significantly more, it would encroach on the box office,"" he believes. ""And that would be counter-productive to the distributors' total economic returns because what's lost in theatrical probably won't be fully made up in home video."" Films with $10 mil. to $29 mil. in domestic box office went into video on average in 115 days during 2005, no surprise given that such lackluster box office results in truncated theatrical runs. Films that grossed over $30 mil. in domestic theatrical box office averaged 132 days or longer to video, according to Kagan Research. Of nine film genres tracked by Kagan Research, action films were the fastest to go to video, averaging 119 days in 2005. The longest window was for documentaries that averaged 158 days, a result of their long theatrical runs in few theaters. Shortening the theatrical window is designed to let video releases catch a sizeable ""halo"" effect. The just-released Kagan Research databook THE BUSINESS OF MOVIE PRODUCTION & DISTRIBUTION 2006 counts $4.4 bil. in 2004 domestic theatrical distributor spending on prints-and-advertising by major studios and independents. The top seven distributors -- all major studios -- averaged between $22.9 mil. to $34.3 million per film in P&A spend for cinema releases. ""With DVD popularity infusing the home video business, advertising budgets for video release have become comparable to theatrical ad budgets,"" notes Holden. ""This should be no surprise because distributors make more in video than in theatrical release."" THE BUSINESS OF MOVIE PRODUCTION & DISTRIBUTION 2006 assesses the state and future of movie production and distribution with exclusive 10-year projections, analysis of industry trends, as well as comprehensive rankings, averages, financial statements and statistics, ratios and expert examination of revenue streams and costs.

Read More: