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Pay-per-view economics may fall short for ‘The Interview’

The economics of pay-per-view suggest Sony Pictures will have a hard time generating enough revenue to recoup the estimated $80 million it has spent so far making and marketing "The Interview." The movie opened in 331 theaters on Christmas, taking in more than $1 million in ticket sales, according to Rentrak Corp. It also topped the charts of two online marketplaces, Microsoft Corp.’s Xbox video store and YouTube’s movie store.

A family of five could watch "The Interview" at home for the $5.99 online rental price at YouTube Movies, compared with the $50 or more they would pay in a theater. The Seth Rogen film, a fictional comedy about a plot to kill North Korean leader Kim Jong Un, prompted a cyberattack that the FBI linked to that country’s government and led Sony to shelve the release.

"There’s a reason why the industry has its typical release pattern, with the theatrical first," said Paul Dergarabedian, senior media analyst at Rentrak Corp.

Bloomberg News