Smartphone movie streaming will cost less than an 80-inch Ultra HD screen in the future according to Dreamworks boss Jeffrey Katzenberg.
The former Disney chairman told fellow entertainment super-suits at the Milken Global Conference in California that they won’t be able to continue releasing films in cinemas and on TV over months or years.
Katzenberg said the film industry is no longer a growth industry, and the studios will have to abandon the ‘window of availability’ business model.
“A movie will come out and you will have 17 days – that’s exactly three weekends, which is 95 per cent of the revenue for 98 per cent of movies,” he added.
The boss of the movie studio behind such franchise hits as Shrek, Madagascar and Kung Fu Panda said that on the eighteenth day, these movies would be available everywhere and viewers would then pay for the size of their screen.
He suggested that people would pay $15 (£9) per film for a movie-sized screen, $4 (£2.40) for a 75in (190cm) TV and $1.99 (£1.20) for a smartphone.
But the model may have a big flaw, as smartphones and tablets are capable of retransmitting video to much larger screens without a degradation in picture quality, using dongles such as Google’s Chromecast or Roku’s Streaming Stick.
While services already charge a £1 (or $1) difference for HD downloads, Amazon and iTunes are unlikely to agree to complex pricing models.