Apple Wants To Sell Movies Two Weeks After Cinema Release, But Prices Reveal A Bigger Problem For Hollywood

The world of cinema has been struggling for a few years as our demands and expectations continue to rise. The lethal combination of increased ticket prices, overpriced snacks and an extensive list of remakes suggests the movie industry is short on ideas.

Apple's Proposition

According to a recent report from Bloomberg, Apple is in talks with Hollywood for early access to movies on iTunes. The tech behemoth wants to make premium movies available for online rental within two weeks after they premiere in theaters.

This is a major disruption. The allure and exclusivity of movies is presumably what brings viewers to the theater. If movies were predictably available on Apple two weeks after the premiere, it could demotivate moviegoers, unless the movie-going experience is enhanced substantially.

However, online content alone won't push people away from the theatre when Apple prices are allegedly going to be in the $25-$50 range. In fact, movie ticket prices are pushing people away from the theaters. Most people consume music, video, and other media online for free or for a monthly rate.

Before making a decision, movie magnates must consider the nature of media in the 21st century.

Movies Ain’t What They Used to Be

With physical media all but dead, the habit of waiting several months for a DVD release feels antiquated to younger audiences. The always-online generation craves instant gratification, which creates a rift between them and an industry clinging to past models of success.

There is currently a mass of available content that anyone looking for premium entertainment will find more options on their giant 4K TV in their home than at the movies. Endlessly streaming options from the likes of HBO Go or Netflix leaves very little time or incentive to pay good money to sit in a crowded room of patrons who are blissfully unaware of etiquette.

Piracy is another problem that will never disappear. Tech-savvy users have migrated away from downloading torrents, using platforms such as Kodi to stream the latest movies with relative ease. As quickly as these outlets are shut down, more will instantly appear. But, this just highlights how the old model is not fit for our digital landscape.

When All Else Fails, Give the People What They Want

The success of Apple's home rental initiative needs to be carefully thought out. If there is any truth in the projected ticket prices of between $25-$50, it could lead to premium content quickly being transferred to the illegal streams instead. Either option is terrible news for theaters.

That's bring up the issue of piracy. Relying on Screening Room technology that uses a watermarking tactic to prevent piracy and track down the source of a leak is completely missing the point. There will always be workarounds to any software-based solution. The key is to stop people wanting to choose the illegal path.

There is a separate argument about the devaluation of art in contemporary society. Many people are willing to pay more for a Starbucks coffee than an album. There has always been an economic barrier to the enjoyment of art. The difference now is that the means to circumvent that barrier are manifold.

In my view, this isn't about devaluation, it's purely economic. Free trumps pay, every time.

In Sum

Apple's proposition should be framed in simple economic terms of price and access. The combined cost of listening to unlimited music and watching unlimited content is much less than a night out at the cinema. Furthermore, there is not a scarcity of resources for non-moviegoers to watch premiere movies. Piracy is alive and well.

So, expecting people to pay $25-$50 to watch movies online rather than at the movies is absurd. People get more for way less already. Music lovers listen to entire albums on YouTube and binge watch entire seasons of House of Cards or Breaking Bad for under $20 a month.

These figures perfectly illustrate why the movie industry risks becoming irrelevant and why audiences frequently choose piracy. This is not something Hollywood executives will want to hear, but something they will need to face up to sooner rather than later.

What was the last movie you watched in the cinema? Or would you pay a premium of $25 - $50 to watch your next big movie in the comfort of your home?

Let me know your thoughts by commenting below.