The next wave in the release of rental 3D movies for the home is the advent of the 2021 subscription market. 3D box office numbers have dropped off dramatically in recent years, but the future may hold even better things for this once hot industry. A possible downturn could be a consequence of the new Hollywood blockbuster “The Fantastic Mr. Fox” which opens in October. This could lead to movie rentals hitting a plateau and then a complete decline in ticket sales.
Signs That Indicates The Happening
There are some signs that this could happen. Home movie rentals fell 6% in May from last year, while overall home-video sales rose 3%. Analysts have blamed the weaker consumer demand on the upcoming holiday season, the summer’s weather and increasing levels of stress from the presidential election. However, all this could change with the arrival of the “Affordable 3D Movies” plan from Hulu. It is possible that consumers are becoming less frugal due to pressure from the media and the economy. With the monthly cost of “free movies” going down to only $1.50, could the market for rental services shrink?
I believe this could happen if the economy holds steady or worsens. If there is no recession and the economy holds its current status then there will be tremendous pent up demand for cheap (but quality) entertainment. If the economy worsens then the availability of cheap (but good!) entertainment will diminish. If there is no economic recovery and the economy goes into a slump then the “Affordable 3D Movies” plan will become a reality.
Things To Take Care Of
It is not too far out in the future that Hulu will offer its subscribers (which include not just people who go to Hulu for TV but also people who use it to stream video files from different video services) access to a huge catalog of free movies. In the last few years Xfinity has been adding a great deal of high definition channels to its lineup. If the company does not have HD channels available to everyone in the US by 2021 then it really will be going against the grain. I think they should be doing everything possible to keep people from leaving the service, which is ultimately what will keep them in business.
Create A Home Equity Amount
In the next three years the major players in the viewing industry will have added an incredible amount of content to their already impressive catalogs. By the end of next year there will be more HD movie channels than there are currently. And by the end of 2021, there will be more HD network programming than there is today. There are already rumors that Disney is looking at putting out some high definition movies on the Xbox, and they may also begin offering free “season passes” for the service as well. All of this will put a tremendous amount of pressure on the market for rental 3D movies on an affordable rate.
Currently Viacom is the second largest pay per view provider behind Comcast. Both of these companies have a large stake in the success of each other. Viacom owns and operates MTV and also owns stations including Cheddar’s and Comedy Centrals. Comcast owns NBC Universal, which produces and operates the popular theme parks including Disney, Sea World and Universal Studios. In the future I expect that all of these companies will merge or become one.