From Allen Pitt at BAF ... Veronica Mars to Break the Mold for Movie Releases Warner Bros. Plans Simultaneous Launch for Theater and Home Viewing on March 14 By BEN FRITZ Wall Street Journal Kristen Bell stars in the coming Veronica Mars movie, which will be released in movie theaters and video-on-demand on the same day. On television, Veronica Mars was a gritty teenage private investigator who wasnt afraid to break down doors. Now a movie version of the show is about to do the same thing. Veronica Mars will be released by Time Warner Inc. TWX -0.38% s Warner Bros. in about 270 theaters on March 14, the same day that it is available to buy or rent online. It will mark the first time one of Hollywoods six major studios has distributed a movie in theaters and for home viewing at the same time in the U.S. For decades, a sacrosanct theatrical window protected big-screen releases from the competition of DVD sales, rentals or other distribution platforms. Under intense pressure from the largest cinema chains, which argue that such competition would take business away from them, studios usually put at least three months between theatrical and DVD or video-on-demand releases. In the past few years, independent studios and theaters have begun to chip away at the theatrical window with simultaneous releases—but only for low-profile movies and usually on a small number of screens. For Veronica Mars, which originated with a fundraising campaign on Kickstarter, Warner Bros. has found an unusual workaround. The studio is paying AMC Entertainment Holdings Inc., AMC +1.64%the nations second-largest chain, to rent 260 screens across the country (the other 10 playing the film are independently owned). Because Warner is renting the theaters, AMC doesnt consider it to be a violation of its standard 90-day window policy. Typically theater operators and studios split revenue from ticket sales. For Veronica Mars, AMC will sell the tickets as usual, but Warner will pocket the box office sales. On projects like this where we know we have a partner with the resources to promote the film and an easily targetable audience, we will rent theaters out, said Nikkole Denson-Randolph, AMCs vice president of special and alternative content. The duration of the rentals will depend on how well the movie initially does, she said. AMC has never rented out so many theaters for a single movie before, Ms. Denson-Randolph said. The most successful simultaneous releases in the past, such as Arbitrage starring Richard Gere, played primarily in independently owned theaters. Those theaters dont always adhere to traditional release windows and typically have smaller audiences. AMCs major competitors, including Regal Entertainment Group RGC -0.53% andCinemark Holdings Inc., CNK -0.24% dont rent out theaters to movies that will be released at home within fewer than 90 days, said people in the industry. It usually costs between $5,000 and $20,000 a week to four wall a single screen, as renting one out is known in the movie business, according to a knowledgeable person. Executives at AMC and Warner declined to discuss financial details of their agreement. For Warner Bros., which is known for bigger budget event films like The Lego Movie and Man of Steel, Veronica Mars represents an experiment, not a harbinger of broader changes to its business. Although the Veronica Mars series was canceled by the CW Network—co-owned by Warner and CBS Corp. CBS +0.23% —in 2007 because it drew only about 2.8 million viewers a week, its fan base has remained loyal and long demanded resolutions to plotlines left dangling. Show creator Rob Thomas and star Kristen Bell pushed the movie idea last year and convinced Warner, which produced the show, to release it if they met a Kickstarter goal of $2 million. The effort ended up raising $5.7 million from more than 91,000 people. Actors from the TV series including Percy Daggs II, Jason Dohring and Enrico Colantoni agreed to appear. The existence of Kickstarter and the emergence of the social Internet make something like this possible, said Thomas Gewecke, Warners chief digital officer. The economics work. Because the passions for Veronica Mars run deep, executives at Warner and AMC said they are confident fans will go to theaters with friends and buy or rent a copy to watch again at home. Home pricing is set by cable and satellite providers, but on-demand rentals generally cost about $5 and digital purchases are between $15 and $20. Some funds from the Kickstarter fundraising are being used for T-shirts, posters and other rewards promised to fans who donated money. The studio funded the rest of the movie, which ended up costing a little over $6 million in total. Advertising is being done entirely online and in AMC theaters, with no traditional television spots or billboards. Given the movies modest budget, Warner says it is counting only on the existing Veronica Mars fan base to attend. They can make it successful for us, said Jeff Goldstein, executive vice president of distribution for Warner. If we extend beyond that, itll be gravy. Mr. Gewecke said Warner has looked at other properties from its television and film library to see if they could qualify for the same treatment of a low-budget movie that can be released simultaneously in theaters and online. The passion of the fan base and the very strong connection to Rob and Kristen online are the essential ingredients, said Mr. Gewecke. Write to Ben Fritz at ben.fritz@wsj
Posted on: Sun, 23 Feb 2014 15:43:35 +0000
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