‘Interview’ streaming a test for film industry

ATLANTA – Sony’s “The Interview” has been a hacking target, a punchline and a political lightning rod. Now, with its release online at the same time as it debuts in theaters, it has a new role: a test for a new kind of movie release.

“The Interview” stars Seth Rogen and James Franco as journalists tasked by the CIA with killing North Korean leader Kim Jong Un. Its Christmas Day release was canceled by Sony after threats of violence by hackers linked to North Korea. But after an outcry, the release was reinstated in some independent theaters and through a few online video services.

Although the circumstances surrounding “The Interview” are unprecedented, experts say the release will be closely watched to see how moviegoers and theater chains react to a simultaneous debut. It’s a challenge to the long-standing practice of “windowing” – opening a movie first in theaters to maximize box-office revenue before making the movie available in other stages of home video, streaming and television.

“I can’t say that this is the future,” said Jeff Bock, senior box office analyst for Exhibitor Relations Co. “For this film, in particular, it works because of the saga that goes along with it. But it’s nice to have a film we can actually use as a guinea pig for a video-on-demand release.”

Sony released “The Interview” Wednesday on a variety of digital platforms – Google Play, YouTube Movies, Microsoft’s Xbox Video and a separate Sony website. It costs $5.99 to rent for 48 hours and $14.99 to purchase. It also opened in more than 300 smaller theaters on Thursday, though major chains are still holding out.

Carrying “The Interview” marks another step in Google’s efforts to establish YouTube as an entertainment hub that features major movies and trendy music videos – not just cute clips of kitties. Google, though, said it is providing outlets for the movie because it wants to safeguard free speech.

Online availability of “The Interview” comes as more people are choosing to stream video online, largely because of YouTube, Hulu and Netflix, which has been phasing out its original DVD-by-mail business over the past four years.

Releasing a major motion picture in theaters and online simultaneously – known as a “day-and-date” release – has never been done by a major studio with a mainstream movie like “The Interview.” It’s been limited to some smaller indie and foreign movies. The upcoming “Crouching Tiger, Hidden Dragon” sequel will be released on Netflix and Imax theaters on the same day, but that isn’t a studio production, despite the involvement of the Weinstein Co.

With a modest budget of about $40 million, “The Interview” had been predicted to gross about $30 million in its opening weekend. Bock estimates Sony could gross just a fraction of that – $3 million to $4 million – at the box office this weekend. As for streaming, Bock said the $5.99 price for rental is much lower than regular theater tickets, and that could drive demand. But Sony isn’t likely to make up all of its costs, including the tens of millions in marketing costs already incurred.

By including “The Interview” in their libraries, YouTube and Microsoft’s Xbox can also make more people aware they rent and sell a wide range of videos. Although YouTube began renting movies nearly five years ago, many people think of the site as a destination for free clips lasting for a few minutes instead of place to watch full-length films.

Gitesh Pandya, editor of Box Office Guru, said all the media attention should lead to “strong averages from the limited theatrical release plus solid video-on-demand sales” over the holidays, but he expects demand to fade in January because of the quality of the movie.

“It is great that a freedom of speech debate is happening for Hollywood films,” he said. “I just wish it was centered around a better movie,” he said.