The Vail Daily reports on the closing of the last video store in Vail county. What technologically-savvy, cutting edge users of online rentals and Netflix do they find to explain the death of the video store?

Two movie theater managers.

That is just awesome topped with awesome sauce.

With movie theaters in the middle of an all-time record weekend in an all-time record year, the L.A. Times produces a useful round-up and look ahead at the theatrical release window:

 Exhibitors have drawn a line in the sand, steadfastly resisting the compression of release dates that they view as a threat to their livelihood. They get nervous when a studio attempts to release a movie on DVD less than 90 days after opening in theaters. Nonetheless, theater executives now are acknowledging they may need to adapt.

"We're going to protect our side of the business," said Amy Miles, chief executive of Regal Entertainment Group, the nation's largest theater circuit. But "we'd like to think that we'd work with the studios as business models evolved."

It's a delicate balancing act.

Theater operators want to be open to change without undercutting ticket sales, which have been remarkably strong. Above all, they hope the studios won't be oblivious to their concerns. "We want to know what's going to happen, and we want to have some input," said Tony Kerasotes, chief executive of Kerasotes Showplace Theatres and chairman of the National Assn. of Theatre Owners, a trade group.

For all their talk, however, studios say they're not ready to do away with windows entirely, fearing it could cannibalize their own business.

"People always say consumers want it all now, and Hollywood needs to change its business models," said Jim Gianopulos, co-chairman of Fox Filmed Entertainment. "But I've yet to see anyone show up with a simultaneous-release model that works.

"We need to experiment and allow consumers to take advantage of new technologies and ways to experience movies conveniently."

Read the whole thing.

The interview covers the waterfront from Avatar to windows.

Sony has stirred up the ire of theater owners with its plans to offer Cloudy With a Chance of Meatballs to owners of Internet-enabled Sony brand Bravia TVs a mere 81 days after its theatrical bow. According to the Hollywood Reporter:

Exhibition sources said Tuesday that at least four major theater chains were poised to pull "Meatballs" from theaters: Regal Entertainment, AMC Entertainment, Cinemark and Marcus Theatres.

Distributed in both 2D and 3D versions theatrically, "Meatballs," which bowed Sept. 18 in theaters, played last weekend in a total 1,126 venues and was expected to shed at least a few hundred engagements starting Friday. As a result of the exhib protest, "Meatballs" could play in as few as 300 theaters beginning this weekend.

"Meatballs" rung up $1.3 million last weekend. So the accelerated wind-down to the pic's theatrical campaign likely will cause a modest but quantifiable revenue loss for Sony. There's been little reaction from the DVD retail community to the distributor's digital moves with "Meatballs" and "Hancock," perhaps due to the high $24.95 price for the digital viewing.

Stay tuned to your Internet-enabled TVs...

You don't have to make a Federal case out of it.

Oops..wait:

In regulatory filing today, the Motion Picture Assn. of America, the chief lobbying group for the major studios, restated its support for a waiver of current Federal Communications Commission rules that would clear the way for a technology that would allow consumers to watch movies at home close to or during their theatrical release. The so-called selectable output control technology would prevent the illegal copying of movies, which has been a major stumbling block to delivering first-run movies directly to consumers.

"Many of us love movies, but we just can't make to the theater as often as we'd like. That is especially true for parents of young children, rural Americans who live far from the multiplex and people with disabilities that keep them close to the home,'' MPAA Chairman and CEO Dan Glickman said in a statement. "Having the option to enjoy movies in a more timely fashion at home would be a liberating new choice."

This is actually not new. The initial MPAA request for the SOC waiver was made last summer. NATO filed comments with the FCC opposing the plan. The MPAA recently stepped up its campaign for the waiver and made a very public case for it today in a press release explaining its reasoning.

Variety notes NATO's response.

National Assn. of Theater Owners prexy John Fithian said his org is opposed to the MPAA's request because of the windows issue and not because of the antipiracy technology. He said it is disconcerting that the MPAA hasn't said exactly when a movie would be made available.

"We do oppose an undefined model of early release to the home. We want to know how early these movies are going to be released," said Fithian, who is meeting with the FCC this week on the issue.

Over at Deadline Hollywood, Nikki Finke looks at the story with typical restraint.

The L.A. Times is reporting that Sony has agreed with theater owners to hold off on releasing the DVD for the Michael Jackson concert documentary, This Is It, until after Christmas.

 Sony Pictures desperately wanted to release the DVD of the Michael Jackson concert movie "This Is It" for the holiday shopping season, but backed down after movie theater owners balked that it was too soon following the film's theatrical premiere.

"This Is It" opened in 99 countries yesterday and is scheduled for a limited two-week run, though the studio may extend that depending on ticket sales.

Sony had hoped to capitalize on audiences' heightened interest in what turned out to be Jackson's final performance by releasing the DVD in mid-December, about a month after the movie ends its short time in theaters. The disc is now expected to come out in late January or early February.

As noted in recent posts here, the theatrical release window is a question of considerable concern for theater owners. Negotiations between studios and theater owners can become quite intense.

"We felt we made a pretty good case as to why this movie was different," said Jeff Blake, vice chairman of Sony Pictures Entertainment, who oversees worldwide marketing and distribution.

However, the movie theater owners refused to budge.

"We had several conversations with Sony and so did our members," said John Fithian, president of the National Assn. of Theatre Owners, an industry trade group. "Anytime we see the window go under three months, we alert our members and raise concerns with the studios."

After hearing complaints from executives at several of his member companies, Fithian said, "I raised a general concern with Sony about the extraordinarily short window."

After talking with theater owners, Sony, whose DVD releases on average come out four months and four days after a movie's theatrical run, reluctantly decided to back off from its request in order to preserve good relations with them.

"We didn't want it to be an issue," said Blake. "At the end of the day, we wanted a big theatrical run and they certainly stepped up and supported that with 6,000 screens in 3,481 theaters."

However, the Sony executive acknowledged that he was sorry the studio didn't get what it it wanted. "It would have made a big financial difference to us," he noted.

This Is It grossed $2.2 million in late Tuesday night debuts. Wednesday grosses have been estimated anywhere from $8-10 million. Offical numbers are expected from Sony later today.

Following up this post, Variety reports that Paramount is widening the release window on The Goods: Live Hard Sell Hard.

 In an effort to assuage exhib concerns, Paramount did agree to push back the DVD launch of Jeremy Piven laffer "The Goods: Live Hard, Sell Hard" from Nov. 11 to late November. Had the release date stayed the same, "Live Hard" would have come out only 12½ weeks after its Aug. 24 release.

Although, Paramount did not move the disputed G.I. Joe DVD release - a skinny 88 days - it did assert that the narrow window was an exception, not a policy.

Par, besieged with calls from angry theater owners, held a number of discussions with exhibs. Studio told exhibs that "G.I. Joe's" DVD launch was timed to the release of Hasbro's corresponding toy line for the holiday season, and that it was the best thing for the franchise.

Given that DVD revenues have been down the last two years and continue down an estimated 13.9% this year, while theatrical box office has set records the last two years and is on pace to set another record this year, it isn't surprising that distributors are sending movie theater owners some love.

"I think ultimately, Paramount remains committed to separate DVD and theatrical windows, and completely committed to protecting the moviegoing theatrical experience," Paramount vice chair Rob Moore said.

The Hollywood Reporter takes note of a couple of recent extremely narrow release windows:

The Windows War is on again.

Paramount's recent move to schedule two DVDs for release less than three months after their theatrical openings has renewed hostilities between Hollywood studios and movie theater operators.

Last week, Par scheduled its summer action hit "G.I. Joe: The Rise of Cobra" for a Nov. 3 debut on shiny disc, or 88 days after its release in theaters. It also set the Jeremy Piven comedy "The Goods: Live Hard, Sell Hard" for DVD release Nov. 10, also 88 days from its theatrical bow.

The article goes on to note NATO's release window tracking reports, which are available here. Our last report covered films with announced home release dates through September 25. The article gives our updated numbers through October 12.

Needless to say, exhibitors are not shy about expressing their opinions.

"I view the studios as our partners, but it seems like the rules of the game are changing," Cineplex chief Ellis Jacob said. "That's a concern. We at Cineplex have invested a lot of money in our theaters and in new technology such as 3D. So when something like this happens, it creates an issue with people from the standpoint of entertainment choices. If a guest of ours knows a movie is going to be on DVD in less than 90 days, then they know that if they miss it they can catch it on DVD not too much later."

Regal's president, Greg Dunn, made his company's views clear.

"Maintaining the appropriate timeline or windows between the theatrical release and ancillary markets is critical and essential for the overall good of the film industry," Dunn said. "If the existing windows policies were significantly adjusted, we would aggressively respond -- as we would toward any policy that would negatively impact the industry."

The Reporter's Carl Diorio got no on-the-record responses from Fox or paramount.

NPD's "Entertainment Trends in America" reports that nearly 80 percent of frequent moviegoers plan to go to the theater the same amount or more often than they did last year, despite news about a declining U.S. economy. Even among infrequent moviegoers (those who attend movies once or twice within three months) 57 percent plan to hold steady, or even increase, their attendance this year. (emphasis mine)

Taken from a sample of more than 11,000 consumers, the report notes certain factors that drive consumers to the movies:

The top reason cited by consumers who intend to go to the movies more often this year is the social experience of going with family, friends, or significant others (73 percent). Nearly half (48 percent) pointed to the overall "movie-theater experience" (e.g., large screen, sound systems, etc.) as a primary reason they like to watch movies in the theater.

Makes sense - and it's something we've been saying here quite a lot. Something else we've been saying - home entertainment technologies are not a threat to moviegoing. Movie theaters and home entertainment are complementary. People who love movies are promiscuous. They'll watch movies over and over and in many different ways.

According to NPD's report, frequent moviegoers are 20 percent more likely than the average movie-ticket buyer to purchase DVDs of recent theatrical releases. They are also 60 percent more likely to rent a movie downloaded from the Web, and 40 percent more likely to purchase a movie as a digital download.

We don't expect frisky movie-goers to confine their love solely to the movie theater. But we do believe in serial monogamy - the preservation of the theatrical release window. 

To sum up, the sky is not falling, movie theaters continue to not die. Will the Wall Street Journal report it? "Buehler...? Buehler...?"