Maybe the exhibitors could sell the DVDs?

With all due respect to the 40% of exhibitors who will be losing business (or their entire business), the clock seems to be ticking on their release window. Video Business reports that the Journal of Marketing will soon report Hollywood could increase revenue by closing the release window altogether. This phenomenon holds true only for the U.S. where studios could gain 16% in revenue by releasing DVD sell-through on the same date as theatrical release. On the flip side of the coin, theatrical distributors will see a 40% fall in revenue. Elsewhere in the world, day and date releasing of DVD and theatrical will not have a positive effect on studio revenue.

So, no matter what action is taken someone is going to be worse off. I'm going to assume the window is eventually going to close and movies will be released flat out - DVD, VOD, Theatrical, iTunes, whatever. How can theatrical survive? It's going to be tough while there is a shakedown and financially unstable theaters close. As a consumer I'm kind of excited, though. I like movies and I like seeing them at theaters. I get excited when I get a chance to see a movie at the theater - even something I've seen before, like THE GOOD, THE BAD, AND THE UGLY. I expect the competition to bring out the best in some chains. Better service, more options. DVDs could be sold at the theater - what if I see the movie and then get a discount on the DVD?

I just hope this doesn't lead to the opposite - a homogenization of theaters as the expense for niche theaters becomes to much to bear.