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In what could be bad news to PE firms heavily invested in AMC Entertainment Inc. and Cinemark Holdings Inc., Comcast Corp. is talking to movie studios about securing simultaneous releases of films in theaters and on-demand. While the short-term prospects for the theater companies look good thanks to a strong summer blockbuster season — best exemplified by the recent "Spider-Man 3" release — Comcast's efforts could explain Cinemark's poor IPO performance, which lead AMC to pull its own offering. After all, Comcast is talking about pricing simultaneous on-demand releases at $30 to $50, according to the Los Angeles Times. At those prices, a family of four could break even in areas where theaters charge $10 a person for admission. Should Comcast and the studios come to an agreement — and they likely will, considering a post at Ars Technica that indicates the studios could stand to reap a 16% increase in revenue from such an arrangement — the theater chains could face the same troubles that Blockbuster Inc. and other rental chains face from video on demand and other digital distribution services. —Matthew Wurtzel
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