According to a recent article in The New York Times, Comcast is testing a service in Pittsburgh and Denver that will allow customers to download a movie via the company's On Demand service on the same day it becomes available for purchase on DVD.
Consumers usually have to wait 30 to 45 days from when a movie is released on DVD for it to be available On Demand. "This is a sampling mechanism for the title," Andrew Mellett, vice president for the video-on-demand division of Warner Digital Distribution, told the Times. "I don't expect it to cannibalize sales on DVD. What we are really interested in seeing is whether this increases the buy rates."
The Times reports that Comcast has declined to comment on the project, although it has been advertising films' availability in local newspapers. According to the paper, Comcast has been the industry leader in offering free and paid video on demand, compiling a library of 8,000 movies and television episodes in an attempt to lure subscribers and distinguish itself from satellite TV.
Also quoted in the article is a representative from Blockbuster, which could be hurt by the success of simultaneous release. The company said that the sales and rentals of DVDs represent the largest revenue stream for the studios and "we believe that they will be very cautious in introducing any new less profitable service that could be cannibalistic to the rental and retail channel."
For more details, check out the full New York Times article On Demand and on DVD at the Same Time.
