According to a report from Bloomberg, several major Hollywood studios are in talks with Apple and Comcast. The two may create a premium rental service which could offer movies to consumers a scant two weeks after their premiere in theatres. Evidently, this could take a bite out of movie theatre profits, and could unlikely completely phase them out.
According to the report, the deal’s proponents propose to include major theater companies in the profits if they approve of the idea. So far parties haven’t been able to agree on terms. If the studios decide to go ahead with the deal anyway, it’s possible theaters could be left out in the cold.The studios mentioned as examples in Bloomberg‘s report as potentially working with Apple and Comcast are Warner Bros and Universal.
Disney, for its part, is not joining the negotiations — though given the company aims to make its own streaming service, chances are good it doesn’t think it needs Apple.