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Warner Brothers to Launch Premium VOD Service in Q2

Beginning in the second quarter, Time Warner Inc.'s Warner Brothers studio will make its movies available on demand to cable, satellite and telco distributors 60 days after their box office run, making official what most in the industry have been expecting for months.

Time Warner had said in September it was testing a premium VOD offering with windows between 30 and 60 days after their box office run. That service, which was expected offer movies for about $20 to $30 each, drew the ire of theater owners who feared it would severely cut into their business.

Time Warner chairman and CEO Jeff Bewkes did not reveal the ultimate pricing of the service, but opting for the longer window appears to have been made to appease theater owners.

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