AOL RED Announces Exclusive "Direct-to-download" Horror Film Release

Today AOL announced that they will release the horror film 'Incubus' as a "direct-to-download" exclusive on AOL RED, a teen-centric entertainment site.
Starring Tara Reid, the feature-length film follows a group of six teens attempting to escape from a government paranormal research lab. AOL plans to sell downloads for 7.99 or five day rentals for $3.49. Purchasers can begin watching the stream as it downloads. The film will be available for download beginning on October 31st, and AOL will have a 30 day exclusive window before the DVD hits stores. AOL plans to promote the release with a user-generated content contest where fans can submit homemade horror shorts. No specifics on prizing was mentioned.
At first glance, this looks like a creative way to build buzz for both AOL RED (who heard of it before today, anyway?) and the DVD's release. However, given the fact that the target audience spends more time online than watching television, this little promotion may have stumbled on a new window. If they're successful, that is…
Wal-Mart Accelerating Digital Movie Download Efforts
According to recent reports on CNNMoney.com, Wal-Mart is ramping up its movie download service efforts amidst the recent launch of Amazon and Apple’s services.
The single largest seller of DVDs in the world, Wal-Mart accounts for upwards of 40 percent of all DVD sales, mainly from highly popular new releases from the studios. The article speculates that the move is part of Wal-Mart’s effort to maintain this dominance.
Wal-Mart is still working out the pricing and delivery options for the service, which may include free or discounted downloads with purchase. Downloads would be available at walmart.com, and the company is also considering in-store burning kiosks as well.
Wal-Mart’s moves come just weeks after it was widely reported that they threatened not to sell titles of companies making download deals with Apple. Earlier this year, Wal-Mart refused to carry Disney’s 'High School Musical' after it appeared on iTunes prior to release in stores.
Apple Announces Feature-length Downloads for iTunes

In a special presentation yesterday, Apple CEO Steve Jobs unveiled the new iTunes movie store, which will enable users to buy and download feature-length films.
The initial slate of 100 movies includes an offering of titles from Disney-affiliated labels Pixar, Miramax, Touchstone, as well as Disney-branded films. A forthcoming deal with Lionsgate is expected, but was not announced during the presentation. The films will be priced at $14.99 for new releases and $9.99 for catalog titles, but customers who pre-order new releases can order them for $12.99. The video files will use the H.264 codec and will be at 640 x 480 resolution, which is “near DVD” quality and suitable for viewing on standard TV sets.
Apple also gave a sneak preview of a new product tentatively called “iTV,” which is a set-top box that will enable users to stream downloaded movies, music, and photos from a computer to a consumer’s television set. The wireless box will also have HDMI output, which should be able to address the studio’s piracy concerns. The iTV release date is slated for sometime in 1Q 2007.
When compared to the lackluster release of Amazon’s Unbox service last week, the Apple offering looks like an improvement if they can secure a wider base of content partners. However, the pricing structure for DRM-hobbled, low-quality video without packaging or special features seems too high. For example, for $20 dollars, you can pick up Miramax’s ‘Kinky Boots’ DVD on Amazon, and for that price you will get DVD quality video, Dolby 5.1 sound, two featurettes, deleted scenes, commentaries, and foreign language tracks. You can play it on any DVD player in or out of the home, and if you wanted to, an individual with minimal technical knowledge can rip a DRM-free version to play on their iPod (albeit illegally). Therein lies the real problem: creating a downloadable product that offers consumers the same level of choice for the same price as a physical product, or reducing the price to reflect the true value to the consumer.
Perhaps the recent conjecture is right - maybe the studios aren't interested in seeing downloads cannibalize DVD sales just yet.
Thinkfilm and Clickstar Test Release Windows with ’10 Items or Less’
Clickstar will make Morgan Freeman’s latest drama '10 Items or Less' available on the web just two weeks after its release in theaters, according to a recent Los Angeles Times article.
The company also announced that the film will be available for purchase and rental on DVD in tandem with Thinkfilm’s theatrical release. ClickStar, Freeman’s joint venture with Intel, will handle web distribution. Thinkfilm announced theatrical distribution rights earlier this week at the Toronto Film Festival.
Directed by Brad Silberling, the film follows a washed up former A-lister (Freeman) who, while prepping for a role in a low-budget movie, strikes up a friendship with a fiery-tongued checkout clerk (Paz Vega) at a local market. According to the Los Angeles Times, Clickstar produced the film for under ten million dollars and shot it guerrilla-style in under three weeks with handheld HD cameras.
Thinkfilm has yet to announce the theatrical premiere date.
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