Hollywood Hopes to Challenge Netflix With $30 Rentals

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    NEWSLETTERS

    Netflix is changing the way Hollywood does business.

    Just how much has Netflix changed the way Hollywood does business? Dramatically.

    Not only have several competing sites launched to challenge the Los Gatos-based video rental service but companys like Apple and Google have also launched their own versions of video rental.

    Now Hollywood is trying to circumvent the Internet but at the same time offer its own video rental service.

    Four of Hollywood's major studios are planning to offer $30 video rentals through DirectTV and some Comcast markets.

    While the price sounds high, Sony, Time Warner, Comcast and News Corp. are banking on customers willingness to pay the premium to watch movies at home just after they leave theaters and before they hit DVD.

    The Wall Street Journal, who is owned by News Corp., points out that the sticker shock is actually not too bad when you take into consideration the average movie ticket price last year was $7.89.

    For people with young children, the service could be popular as well. After all, no one is going to yell at the lousy parent who can't keep his or her kid quiet in their own house.