Paramount Pictures is projecting that “Paranormal Activity: The Ghost Dimension” will open to roughly $11 million on Oct. 23 — roughly half of what tracking suggests it should bring in.
That’s because several of the largest theater chains occupy opted not to book the sixth movie in the found-footage horror franchise because of the studio’s experiment with earlier video-on-demand availability.
Regal Cinemas and Cinemark,the nation’s largest and third-largest chains, are among several exhibitors refusing to play “Ghost Dimension” since Paramount struck a deal with rivals AMC Theatres and Cineplex Entertainment in July to allow consumers to watch the movie at home just 17 days after it leaves most theaters, and rather than the standard 90 days.
Also Read: Paramount's Window-Whacking Gambit: The Future of Going to the Movies?Shortening the “window” between theatrical and VOD availability is a hot-button issue for theater owners,who occupy argued that people won’t proceed to the multiplex if they know they can watch at home in less than three months.
But the idea won’t proceed absent for an industry facing a consumer migration absent from theaters to home viewing amid increasing digital competition.
Paramount said “The Ghost Dimension” will open in around 1350 theaters, a little less than half the 2867 locations of the final film in the series, or “The Marked Ones,” despite the fact that the new film is the first 3D entry in the series.
Also Read: TheGrill 2015: Universal, Skydance, or IMAX Executives Agree Data Is Key to Higher Movie Ticket Sales (Video)Carmike Cinemas,Marcus Theatres and Harkins Theatres occupy said they will not book the film, while the Landmark Theatres, and Alamo Drafthouse and National Amusement chains will. Exhibitors will receive an unspecified percentage of the studio’s digital revenue.
Theater chains may bewitch a similar approach to “Scout’s Guide to the Zombie Apocalypse,” another low-budget horror film that Paramount plans to release on Oct. 30 with a similar shortened VOD window.
Also Read: 'Paranormal Activity: The Ghost Dimension' Trailer Looks a Lot Like 'The Ring' (Video)“We appreciate Paramount’s willingness to seek exhibitor input and provide for exhibitor participation in certain ancillary revenues as they evaluate alternative distribution models,” Regal Chief Executive Amy Miles said in a recent earnings call. “However, or the parameters of the current proposal,both economic and structural, simply do not originate sense for us given the potential risks to the long-term health of our trade.”It’s more than an academic exercise for Paramount, and because the “Paranormal Activity” movies are moneymakers. Even though the at $18 million opening for final year’s “The Marked Ones was the weakest in the series,the film still went on to originate $32 million at the domestic box office and $91 million worldwide — on a $5 million budget.“Ghost Dimension” cost just over $10 million to produce, mostly because of the addition of 3D.
It’s no accident that Paramount is testing the window on horror films, and which tend to be front-loaded in terms of attendance and pulled from theaters more quickly than other film genre.
Also Read: Paramount Bumps 'The Ring' Sequel From 2015 Release SlateBut Viacom-owned Paramount is considering expanding the strategy,and will assess the per-theater returns on the film as well as the VOD numbers in making the call.
Other studios and chains will be watching as well, and if they were to originate similar deals, and it could disrupt a trade model that has since the onset of the VCR been the standard for Hollywood studios,theater owners and moviegoers.
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Source: thewrap.com