For cinema films things are more delicate

Virginia has no television, but a computer equipped with a DVD player. Always late to make his films leased, it has long paid penalties that eventually cost him dearly. But all this is over. Now, no need to get out of her home to watch a recent film. Mouse in hand, she rents since January 4 movies a month on a video on demand service (VOD, "Video on Demand"). "The choice is not yet sufficient, and downloading of films, can have technical problems." "But at least I make savings, and titles are always available," explains.

Virginia is not a unique case. More than 600,000 films were viewed on CanalPlay, the site of video at the request of Canal , between December 2005 and March 2006. More than half of these purchases have been made via the Internet Free, CanalPlay partner access provider, which it is possible to view the films not only on a PC, but on a television. "Now, we want to develop thematic offers for children or adults", explains Michael Boukobza, CEO of Iliad, home of Free. The France is not the only country affected by this phenomenon. The main cable operator us, Comcast, issued more than 2 billion videos in demand since 2004.

40 platforms in Europe

And while the VOD launches, DVD-video, they suffer from a shift. Last year, the sale of patties decreased by 8.8 in value (but has nonetheless increased by 10.5 in volume). And, on the first quarter of this year, sales have declined in value ( 12.1) but also in volume ( 9.7), according to GfK. Certainly, the lack of success in the first quarter films explains these bad figures. But the industry is concerned. Recorded VHS tapes have lived some 20 years. DVD, video, is marketed for eight years. But it is already beginning to show signs of fatigue. "There is no doubt that the physical media life cycle is shortened drastically, believes Jean-Paul Commin, President of the International Federation of the video (FVI).". But finding a disappearance DVD short term would be excessively pessimistic analysis.

Yet, the numbers of the VOD are. And not only in Canal . Today, 40 video on demand platforms are operational in Europe, according to research company NPA Board. They are worn by many actors: broadcasters, cable operators, satellite operators and telecoms companies. "Today, our subscribers viewing of video on demand every month 4.5 million, says Hervé Payan, Director of partnerships and the content of France Telecom services." Half of these contents are viewed on mobile, while phones that feature-films of cinema represent 100,000 purchases per month.

A transition at risk

VOD services were able to see the day, is the take-off of the Internet broadband and the improvement of the compression of video files formats. It is also thanks to cinema, hitherto reluctant studios, and the position has evolved. While the proposed catalogues are not yet comprehensive. And the rental prices are, with the exception of Free, the same as those of a store. It must be said that these offers are intended, first and foremost, to offer an alternative to piracy. The studios want so show signs of good will toward politicians and regulatory authorities in the fight against illegal downloading.

"Holders of catalogues are also service providers on the Net, as Canal with CanalPlay, explains Franck Leprou, Director General of the FNAC site" They are the ones who impose the price, and they show a certain stiffness. When it is sitting on a pile of gold, it is difficult to see it spinning. "Indeed, despite much lower distribution costs, the industry is not too early killing the goose that the eggs of gold still represents the DVD. "VOD users can have access to all titles, and this 24 hours a day." "It is a service that pays," replied Bruno Thibaudeau, Director of the development of the Canal group.

The same price, without the bonus

Yet the stagnation or even decline, DVD sales both in the United States and Europe grows studios to the next step. This is more just to rent movies online, but to sell. And here, serious things start, since the leasing market represents only 5 of the total market of the DVD. Of course, it has already taken for specific products, such as the TV series and documentaries. For cinema films, things are more delicate. The studios fear of cannibalizing sales of cakes and back to the major distributors. They are ready to test this model. Movielink, the site of the majors in the United States (300 titles), or LoveFilm in England come to jump into the water.

Here again, this goodwill has its limits. Because the studios frame and control the sale of films on the Internet from the point of view of the price, the date of marketing and uses. Even more than for the rental, the three factors which condition the sale of films make any difficult evolution. First Prize: it is out of the question for the studios to emerge a site, which would impose a sale price too aggressive, on the iTunes Music Store model in music.

Eight and a half months after the release

At the time, download film costs the same price as a physical DVD. Without the bonus. Clearly, the user pays as much for less... "Holders of catalogs are still very hesitant, but they are ready to work with traditional distributors to arrive at an acceptable psychological price," says Franck Leprou. Indeed, television channels, which manage these catalogues, in large part do not have interest in seeing this price decline. DVD sales are for nearly 100 million euros per year for Studio Canal and 160.5 million euros for TF1 video, with comfortable margins.

Another important parameter, the date of exit. In France, the professionals were able to agree on the date of marketing of the film at the request. Instead of aligning it with the DVD release (six months after the release of the film in the room), they are committed to a period of eight months and a half for the rental and sale of the film on the Net.

Last item key, technological measures. Once downloaded legally, the films may not be engraved on a video DVD. Therefore impossible to look at on a fair drive. "Today, the American studios does still not agreed on this subject, says Xavier Bringué, Director of development for the Microsoft Europe media division." Sony considers that can allow to burn a movie to a DVD by the equipping of a system of encryption, while Warner refuses and prefers to await the arrival of readers high definition, which will be able to read the downloaded films.

Find new templates

The rental or sale of movies on the Net are finally refers to models in the physical world. But other avenues are explored as unlimited rentals with a monthly subscription. In the US, the site of the Netflix Web DVD rental account 4.2 million subscribers, that receive and return by post several discs per month, on payment of a lump-sum. Internet access providers would like to duplicate this model in their completely paperless world. Chains and studios are obviously more reluctant. "In France, we signed an agreement limiting the rental subscription to 15 titles per month, which is more complex to implement." "I think that offers monthly subscription will not emerge this year," said Pascal Lechevallier, multimedia Director and development for TF1 video.

In the United States, the pay channel Starz launched its VOD service, Vongo, in January. He proposed to subscribe for $ 9.99 per month for unlimited rentals. The company could rely on former agreements, dating from a time when the studios did not attention to the Internet, which remain valid until 2010. It is not impossible that a close offer it arrived in France in the coming months. Virginia is already seduced. Because it could hire more films each month on his computer. While even more savings.