Universal dumps plan for early video release of 'Tower Heist'

All that screaming and shouting by the theater chains apparently had an effect. The studio had been planning to make the Eddie Murphy/Ben Stiller comedy available in two markets for "premium" video on demand - three weeks after it opened in theaters on Nov. 4. It was only an experiment, Universal stressed, and at $59.99 it's questionable how many takers the studio would have gotten. But theater owners went nuts over the much-shortened window between theatrical and video. From the LAT:

Studios are looking to such experiments as a way to shift their age-old business models and generate additional revenue that can help compensate for plunging DVD sales that have been undermining movie economics over the last several years. Universal took pains to telegraph its plans to exhibitors ahead of time and stressed to circuits that the "Tower Heist" release was only an experiment. Even so, a number of exhibitors balked at the release, contending such early releases would discourage consumers from buying tickets in theaters.

So the studio caved, though it seems only a matter of time before the distribution windows are scrunched for good. There's just too much investment being placed on streaming and other home distribution methods, and the potential payouts are too tempting. Even the National Association of Theatre Owners, in issuing a press release on word of Universal's decision, "recognizes that studios need to find new models and opportunities in the home market." Sounds good to me - the movie-going experience is nothing like it once was.