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Jeffrey Katzenberg, Chief Executive of DreamWorks Animation, has suggested the availability window for feature films will reduce to as little as 17 days, and that a ‘pay-by-the-inch’ model will also emerge. Katzenberg made his comments during the Entrepreneurial Leadership in the Corporate World panel at the Milken Global Conference in Beverly Hills.
“I think the model will change and you won’t pay for the window of availability,” he told delegates. A movie will come out and you will have 17 days, that’s exactly three weekends, which is 95 per cent of the revenue for 98 per cent of movies. On the 18th day, these movies will be available everywhere ubiquitously and you will pay for the size. A movie screen will be $15. A 75-inch TV will be $4.00. A smartphone will be $1.99. That enterprise that will exist throughout the world, when that happens, and it will happen, it will reinvent the enterprise of movies. You won’t pay for the window of availability, you will pay by the inch you watch.”