NATO members "ballistic" over Paramount's early DVD releases (THR)

By Nancy Tartaglione

Paramount's recent move to schedule two DVDs for release less than three months after their theatrical openings has renewed hostilities between Hollywood studios and movie theater operators, according to The Hollywood Reporter.

Last week, Paramount scheduled "G.I. Joe: The Rise of Cobra" for a Nov. 3 debut on DVD, just 88 days after its release in theaters. It also set the Jeremy Piven comedy "The Goods: Live Hard, Sell Hard" for DVD release Nov. 10, also 88 days from its theatrical bow.

"Our members are ballistic," National Association of Theatre Owners president John Fithian told THR.

On average, Fox maintains the tightest theatrical window among major studios with DVD releases coming 122 days after theatrical debuts.

NATO stats show Paramount has the second-tightest window, at an average 123 days. But this latest move has exhibitors worried that a new wave of accelerated DVD releasing will sweep through Hollywood.

The industry average is now 129 days, according to NATO's tracking of DVD release dates announced through Monday for studios' 2009 theatrical releases.

NATO posts window averages on its Web site and issues "early warnings" when studios schedule unusually early DVD releases. The group then leaves it to individual exhibitors to decide on an appropriate response.

If the film in question is still in theaters, exhibitors might pull it from their circuits or they might put the squeeze on any future negotiations on film rentals with the offending studio, THR points out.

"We don't know what Paramount is up to, but it's highly objectionable," Fithian said.

Ideally for exhibitors, this rapid-fire approach to its holiday disc releases will prove an exception, and the studio will revert to its previous policy of four-months-plus theatrical windows.

"I view the studios as our partners, but it seems like the rules of the game are changing," Cineplex chief Ellis Jacob told THR. "That's a concern. We at Cineplex have invested a lot of money in our theaters and in new technology such as 3D. So when something like this happens, it creates an issue with people from the standpoint of entertainment choices. If a guest of ours knows a movie is going to be on DVD in less than 90 days, then they know that if they miss it they can catch it on DVD not too much later."

Regal Entertainment president Greg Dunn also expressed disappointment with exhibition's "partners" at the studios.

"Maintaining the appropriate timeline or windows between the theatrical release and ancillary markets is critical and essential for the overall good of the film industry," Dunn told THR. "If the existing windows policies were significantly adjusted, we would aggressively respond - as we would toward any policy that would negatively impact the industry."