DirecTV key to VOD

DirecTV is helping four of Hollywood's majors take a big step forward this week in carving out a nationwide test for a new premium VOD window for theatrical releases.

The satcaster spent months working with the participating studios -- Fox, Sony, Universal and Warner Bros. -- in setting the launch plan, from the specifics of the antipiracy technology embedded in the video to the parameters of when DirecTV can tubthump the availability of titles that will be available for $30 as soon as 60 days after a pic's theatrical release.

As for Disney and Paramount, the two largest studios not part of the Home Premiere VOD rollout, "the hope is that they will come in down the road," Derek Chang, DirecTV's exec veep of content strategy and development, told Variety. Chang would not comment on whether DirecTV is in active talks with the Mouse House and Par or other distribs.

For DirecTV, the appeal of being able to offer easy access to new theatrical titles to its subscribers is a big plus in its competition with cable and telco providers (though the premium VOD offering is expected to expand to other platforms after the initial test).

At present, only about 6 million-8 million of DirecTV's total 19.2 million subs have the high-end HD/DVR set-top boxes required to receive the premium VOD, which is pumped directly into the subscriber's DVR hard drive. But the number of HD/DVR homes is growing every day, and the premium VOD offering is a great sales tool, Chang said.

"We're very excited about this. I think we're breaking new ground, and I think (the participating studios) should be applauded for it. Like with any new product, there'll be a little bit of trial and error, but over the long term it'll be a great product for customers."

Chang said DirecTV was aggressive in presenting its forensic watermarking technology -- which allows studios to track copies to individual purchases should the pic wind up online -- and in developing the business model for premium VOD. The deals with each of the studios vary to some degree, he said.