Paramount to test shorter theatre-to-video window

Tired of waiting three months after a theatre releaseto watch a movieon video? Paramount Pictures wants to shorten that window, starting with a pilot project in coordination with two of North America's largest theatre operators, and two low-budget films.

The Hollywood studiois teaming up with AMC Theatres, the second-largest theatre chain in the U.S.,and Cineplex Entertainment, Canada's biggest movie exhibitor, in what they call a first-of-its-kind plan that "could potentially redefine home digital distribution," according to a joint press release.

This fall, Paramount will screen two of its horror movies in theatres across North America,Paranormal Activity: The Ghost DimensionandScouts Guide to the Zombie Apocalypse.On the day they are appearing in less than 300 theatres, they'll be available on DVD 17 days later. Typically, its a 90-day wait.

Although the deal gives up a lot of the theatre's exclusivity, since a consumer might skip the theatre to wait just a few weeks for the digital version,Paramount is paying for it.AMC and Cineplex will get a share of the revenue from home releases during the remainder of the 90-day period.

A new way forward?

"This opportunity offers a viable way for our theatrical partners to retain their window and benefit financially from participating in amore efficient distribution process, while ensuring that audiences are given the chance to see films when and where they want," saidRob Moore, vice chairman of Paramount.

Theater owners and Hollywood studios have long sparred over the theatre-to-digital release window. While theatres have said shortening the window will devastate ticket sales, studios say the 90-day window increases piracy and makes marketing very expensive.

Back in 2011, Universal Pictures sought to make its movieTower Heistavailable to some viewers through video-on-demand three weeks after it opened in theatres. When theatres across the U.S. promised not to play it, Universal backed down.

But in Thursday's release, the head ofAMC Theatres concedes not every movie is a must-see-now movie and this model is ultimatelybetter for consumers.

"Every movie is different and a one-size-fits-all business model has never made sense," according to President and CEO of AMC TheatresGerry Lopez.

Paramount says it's in discussions with other major exhibitors, and it will offer them the same financialarrangement.

If the team trial goes well, Paramount could make it the new standard for all of itsfuture films.