This can be a tough subject and in some ways it would make sense to release them on the web from day one (And who says they have to be free? The studios could still charge a fee for watching them). It would not completely eliminate pirating or someone in the theater with a camera, but it would cut down on it some I think. A lot of people pirate because they want to enjoy the content how they want to enjoy it, not the way that makes the studios the most money. Others pirate because they want everything free. The people that just want everything free, you are not going to win over. It’s a lost cause. The people that want content more conveniently, they still have a chance of winning over.
For instance instead of being afraid of MP3s and online music sales from the beginning and trying to pretend it wasn’t happening and trying to destroy it, imagine if they had embraced it from the start and started figuring out ways to distribute them online. They wouldn’t be playing catch-up now and piracy may not have ballooned to what it is today. Napster simply provided an easier and more convenient way to acquire music than what the labels were offering. Online music sales are successful today, so there is obviously a large amount of people that just wanted the convenience. (Again, there are others that just want it free, and you will not win those people over)
I like the theater “experience” for big action movies, but for others I find it over-priced, a hassle to drive to the theater, and I’m usually so angry at the other people in the theater for talking, messing with their cell phones, bringing a crying baby to a movie, etc that I can’t even concentrate on or enjoy the movie.
The current distribution model generates the most money for the studios. They charge crazy prices for you to see a movie at the theater, where the companies running the theaters gouge customers with the price of concessions. Next the studios profit from on-demand and pay-per-view, where some people that saw the movie in the theater will pay for it again, and others will still pay a high price to see it the first time. Next is DVD where some people will purchase the DVD for the price that they paid for 2 people to see it in the theater in the first place, or rent it for a few bucks. Finally it comes on cable networks like HBO where it is paid for by your premium subscription, then it finally airs on TV where it’s paid for by advertisements. THEN, they resell it all to you again with the next media format that comes out. For instance buying DVD copies of the movies you owned on VHS, then buying Blu-Ray instead of DVD, and on and on.
If they changed the model and put the movie available online from day one, they are losing out on a lot of revenue from repeat viewings and charging people ridiculous prices to see it when it first comes out.
Many industries work the same way and they prey on people wanting the latest and greatest. For instance video games, which start out at $60 to capture early demand for the game at the highest possible price, then within 6 months they’ve usually dropped down to $40 or less.
I think the studios will resist immediate online distribution for as long as possible, and really, it makes sense, as their profits would take a very serious hit if they offered them online immediately unless they charged like $30 for each one. However, I see no reason why they shouldn’t release them online at the same time as they release them on DVD, and a lot of studios still resist doing this. It is inevitable that online distribution will continue to grow, and with devices like the AppleTV that make it easy to rent and download online, there is no reason for them to not embrace that as much as possible. It saves them the cost of pressing the DVDs, designing the cases, shipping them, etc.
However, I imagine that the customers will eventually force their hand into changing their business model just like they did with music. Instead of fearing change they are eventually going to have to embrace it and actually stay ahead of customers and technology rather than dragging behind it.