Comcast to test $60 first-run VoD movies

In a move that is likely to spark backlash from movie theater owners, Comcast (Nasdaq: CMCSA) and its Universal Pictures subsidiary plan to test how many subscribers would be willing to pay $60 to watch a movie that is only available in theaters.

Comcast plans to run the test in Atlanta and Portland, Ore., and so far only has plans to test one movie--Tower Heist, an action comedy film starring Eddie Murphy and Ben Stiller. The MSO will allow subscribers with HDTV set-tops to order the film for $59.99 through its VoD platform three weeks after its Nov. 4 debut.

DirecTV (Nasdaq: DTV) began running similar tests of early VoD releases in April with movies from Warner Bros., 20^th Century Fox, Universal and Sony Pictures. DirecTV is charging $29.99 for its "Home Premiere" service, which allows subscribers to buy several movies 60 days after they premiere in theaters.

Movie theater owners, who protested DirecTV's early VoD premieres, will likely fight Comcast's test, which is distributing a movie on VoD much sooner than the satellite TV provider.

While $60 may seem like steep price to pay for a VoD movie, some families could be attracted to the offer. Considering it may cost a family of four much more than $60 to attend a movie in a theater when you combine the costs of movie tickets with the cost of soda, popcorn and other items from movie theater concessions, subscribers may consider paying $60 for the convenience of watching a new release at home a bargain.

For more:
- the Los Angeles Times has this story

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