A new study conducted by Oliver Wyman has
found that consumers will pay as much as $9 for video-on-demand (VOD) and internet movie rentals if they were available on the same day
as the DVD release. By charging more for "same-day" releases, Wyman also predicts that the movie industry could create as much as $5
billion in growth.
A study of 2,000 U.S. consumers conducted by Oliver Wyman, an international management consulting firm,
found that a price point between $7 and $9 is optimal for the next generation of video-on-demand (VOD) and Internet movie rentals:
high-definition (HD) movies released on the same day as DVDs. This premium over today’s $4 price for standard DVD or VOD movie rental
would create substantial market growth by 2010.
Rollout of HD VOD and Internet movies on day-and-date of DVD release is a growth
opportunity not only because consumers value them and will pay more, but also because this expanded availability will increase overall
movie viewership. The Oliver Wyman study found that that these enhanced offers would lead U.S. consumers to watch and pay for an average
of three more movies per year than they do today, creating a net annual increase in domestic consumer movie spending of more than $5
billion, from the current base of $50 billion.
More information on Wyman's study can be found here.
