Hollywood makes online movie sales push

Nov. 12, 2011 at 1:23 PM
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HOLLYWOOD, Nov. 12 (UPI) -- Movie executives say they have to forge ahead with an online strategy to encourage consumers to buy films even though the strategy still needs some fine tuning.

The effort centers around Warner Bros. plan to use online commerce and storage systems that result in higher sales to consumers who are becoming more accustomed to low-cost online rentals.

The Hollywood Reporter said the strategy is based on the social network Flickster and requires users to take the extra step of opening a separate storage account on the movie-storage service UltraViolet.

"We recognize that the product is not perfect today," said Kevin Tsujihara, president of Warner Home Entertainment. "We don't have the luxury of waiting a year until we have everything perfect."

The Reporter said Warner Bros. paid $75 million for Flickster and is still working to get UltraViolet up and running. The service will still be in its fledgling stages by Christmas; however, The Reporter said Warner and other studios have made reviving its movie sales, which command a much higher rate of return than rentals, a top priority.

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