Hollywood studios to launch video on demand service

Four Hollywood studio giants plan to launch a premium video-on-demand product shortly, allowing consumers to watch films 60 days after their theatre release for $30, insiders have told Hollywood Reporter.

The plan by Sony, Universal, Fox and Warner Bros., designed to help soften the decline of DVD revenue but mocked as too expensive in the blogosphere, has also raised the ire of US theatre owners who are used to an average window of 120 days, the site says.

The National Association of Theatre Owners John Fithian has described the idea as a “misguided adventure”, the site says.

Comcast and VUDU are also reportedly planning a limited service, although Paramount has decided not to participate in the plan because of concerns about piracy.