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Internet Based VOD numbers are Dire, but Streaming on Game Systems on the Rise
Thu Dec 15, 2011 at 07:00 PM ETTags: PlayStation 3, Xbox 360, Streaming, VOD, Industry Trends, Smartphones (all tags)
On average, PS3 owners are using a over a third of system time on Blu-rays and streaming.
Two studies came out recently with some very interesting information that seems conflicting at first glance. The first is that, according to the NPD, online VOD purchases are incredibly low. The second is that streaming on videogame consoles is on the rise.
Internet based VOD numbers account for all devices capable of renting a movie online. According to the NPD report, only five percent of those that can rent VODs are doing so. " It’s understandable that smartphone owners might be hesitant to watch a full-length movie with limited screens and battery life," says NPD's Russ Crupnick, "but few of the other connected devices are showing strong uptake for Internet VOD, either."
Game consoles, however, have been seeing increased usage as streaming and entertainment machines. Nilsen says that 15 percent of the time an Xbox user is on the system, they're watching streaming movies. The PS3 accounts for 15 percent as well, while Wii users devote 33 percent of their time to videos.
An impressive 22 percent of time using the PS3 is spent watching DVDs or Blu-rays, which brings the total movie watching time to 37 percent.
Source: Home Media Magazine
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Video On Demand Revenue to Increase Dramatically Says Study
Tue Jul 26, 2011 at 12:00 PM ETTags: VOD, Industry Trends (all tags)
By 2016, VOD revenue is expected to reach $5.7 billion.
A London research firm called Direct TV Research - not to be confused with DirecTV - estimates that VOD revenues will increase by 58 percent by the year 2016. That would put the total money brought in by on demand content at $5.7 billion.
In the US alone, the money brought in by VOD content is expected to be $1.8 billion with the next highest country, Italy, coming in at $592 million. The research firm states that this number doesn't include pay-per-view sports events or adult content - just the more traditional VOD offerings.
One particularly interesting piece of the study is that it seems free content doesn't incentivize customers like you might think. "There is little evidence to suggest that these free services actually encourage subscribers to pay for on-demand titles," writes analyst Simon Murray. "In fact, it may be harder to convince households to pay for on-demand services if they have become accustomed to receiving free on-demand titles."
Source: Home Media Magazine
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James Cameron, Michael Bay, and More Speak Out Against Premium VOD
Fri Apr 22, 2011 at 02:00 PM ETTags: Premium VOD, Industry Trends, VOD, James Cameron, Guillermo Del Toro, Michael Bay (all tags)
Among the reasons, they cite the ever sliding price point of entertainment.
A group of directors including folks like James Cameron, Michael Bay, Guillermo Del Toro, Robert Rodriguez, Peter Jackson and more have written a letter calling to stop Premium VOD content from happening. They raise some very strong points, but there's no telling whether it will be enough to put the brakes on a project that television providers are greatly in favor of.
Many of the arguments are what you'd expect, but the letter brings up a few things that might not have been immediately obvious, like the ever decreasing cost of DVDs, Blu-rays, and on demand options.
"History has shown that price points cannot be maintained in the home video window," says the letter, "What sells for $30‐a‐viewing today could be blown out for $9.99 within a few years."
You can read the full letter here. (pdf)
Source: Home Media Magazine
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Premium VODs May Come With DVD/Blu-ray
Tue Feb 15, 2011 at 12:00 PM ETTags: VOD, Blu-ray, Premium VOD, Industry Trends (all tags)
Studios seem to be sticking with the idea of premium on-demand content, but they're hoping to sweeten the deal.
There's no question that a market exists for premium on-demand content. Paying $30 to see a movie that's still in the theaters - or just out of them - is a fair price point to some. For the majority of potential customers though, it's still just too high.
Steve Beeks of Lionsgate revealed an interesting idea to make premium VOD more appealing to customers on a conference call over the weekend. Instead of shelling out $30 for a one-night rental, you would also get a copy of the movie when it came out as well - either in digital or DVD form.
"Some of the cable operators have brought that up as a potential idea," says Beeks. "I don’t think we have settled on anything - we are actually anxious to see how the market develops."
The idea of premium VODs that include a copy of the film seem incredibly appealing, especially if a Blu-ray option was offered. $30-$40 for an early on-demand rental plus a copy of the Blu-ray when it comes out could be an offer too good to refuse.
Source: Home Media Magainze
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Netflix Streaming Up, Premium Channel Subscribers Down
Fri Jan 28, 2011 at 12:00 PM ETTags: Netflix, VOD (all tags)
Time Warner lost 141,000 video subscribers in the fourth quarter of 2010. Netflix gained 3 million.
Between Netflix, Redbox and the slew of other cheap and simple ways to get content into the home, people aren't seeing the value in premium channels like HBO, Showtime and Cinemax. After all, why should you tune into programming that someone else picked when you can watch what you want?
Time Warner Cable reports a loss of 141,000 video subscribers in the last quarter of 2010. That number includes video-on-demand as well as premium movie channels. That's a substantial number, and one that certainly helped contribute to the growing number of Netflix subscribers.
Netflix ended the year with 7.7 million new subscribers, with 3 million of those coming in the last quarter of 2010. A third of those customers are going with the $7.99 streaming-only option, while the majority opt to receive one disc at a time.
Source: Premium Channels Down - Home Media Magazine
Netflix Up - Home Media Magazine
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First-Run Movies at Home for $500 Each
Fri Dec 10, 2010 at 10:00 AM ETTags: VOD (all tags)
Oh, and there's a $20,000 setup fee to go with it, so this is basically for Oprah.
Remember how crazy it seemed when we reported on the premium Video on Demand service that would cost $50 a movie? Well it's time to rethink what's sane.
A company called Prima Cinema is launching a first-run VOD service that will bring folks movies currently in theaters. The catch? After a $20,000 setup fee, you'll pay $500 a movie. No, that's not a joke or a typo, they want $500 per movie.
The whole point of the system is to get theatrical movies to those that otherwise wouldn't go. Celebrities and the obscenely wealthy don't like to mingle with us norms. "Precisely because it is a niche market, that upside should come without harming any of our existing partners or revenue streams," explains Prima stakeholder and Universal Picture chairman Adam Fogelson.
John Fithian of the National Association of Theater Owners isn't as happy with the idea. "This proposal will give pirates a pristine digital copy early, resulting in millions of lost revenue to piracy, while at the same time selling a very limited number of units," he says.
Source: Wall Street Journal
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Amazon Drops Fox and ABC VOD Purchases to 99 Cents
Tue Sep 07, 2010 at 12:00 PM ETTags: Amazon, VOD, Apple TV, Roku (all tags)
Amazon's drop in price comes just after the announcement of the Apple TV, which boasts 99 cent rentals.
After all the potential excitement and eventual disappointment about the Apple TV, Amazon made a quiet change that could mean big things for those that download television shows.
As of today, all shows from Fox and ABC are just 99 cents an episode, just like content on iTunes. Unlike iTunes, Amazon Video on Demand lets you buy the episodes for that 99 cent price, rather than just rent them.
The change not only makes Amazon's Video on Demand service quite a bit more attractive – it makes the Apple TV look like less of a bargain. If Amazon can get the same deal going for the rest of the television shows available on the service, it could be huge.
Apple hasn't responded yet to the change, but they've got a pretty big influence in most industries and we could see a price change before the launch of Apple TV in just a few weeks.
Source: Amazon
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Cable Video On Demand Hitting Sony Blu-ray Players
Thu Aug 19, 2010 at 10:00 AM ETTags: Sony, VOD (all tags)
Sony says the new deal may include the PlayStation 3 as well.
Well this is just plain interesting. Thanks to a deal between Sony, Clearleap and Related Content Database Inc, cable VOD content may be heading to Blu-ray players.
Apparently, integration of VOD services to Blu-ray players wouldn't be terribly difficult, since VOD services and Blu-ray players use many of the same technologies. Of course, the stream would come over the internet, rather than through cable or satellite.
It's an interesting setup, and the thinking goes like this. It works well for VOD providers, who have been looking for a way to combat the advances of streaming services like Netflix. It also works wonderfully for the manufacturers, since that's one more thing they can offer as part of their Blu-ray players.
Source: Light Reading Cable
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Movies Could Hit Premium VOD While Still In Theaters
Tue Aug 17, 2010 at 02:00 PM ETTags: VOD (all tags)
The cost to you? Up to $50. Seriously.
Imagine, if you will. You’re hanging out with your friends on a Friday night and everyone wants to see that new movie, let’s say it’s the new Harry Potter flick. Everyone’s had a few beers and the sober guy doesn’t feel like driving. What to do? Order in!
That’s the future as envisioned by major Hollywood studios and providers like Time Warner and DirecTV. It’s a cool idea, but the execution seems to be horribly flawed. Making films available sooner is great, but the pricing is all wrong.
If you want to watch a movie sixty days after its theatrical release, you’ll be shelling out $24.99. That’s more than you’d pay to pick it up on Blu-ray in most scenarios. Here’s where it gets really crazy though. If the movie has only been in theaters for 30 days, you’ll have to shell out as much as $50.
Studios say that this is an effort to match the consumer’s new viewing habits, but the price point is impossible to ignore.
Source: Yahoo
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Sony Moves Cautiously Towards Video On Demand Same Day Releases
Thu Sep 24, 2009 at 03:30 PM ETTags: VOD, Industry Trends, High-Def Retailing (all tags)
In what Sony VP of strategic development Jason Spivak referred to as a test of the market, Sony will be releasing four films on both physical media and through Video On Demand simultaneously.
Slated to hit sometime this winter, Spivak didn’t mention specifics as to what movies would be a part of this trial, but he did touch upon why Sony in particular has been slow to adapt this idea. Movies that get rented could be movies that aren’t being purchased.
Sony’s VP of digital distribution, Sean Carey, agrees with this sentiment. “We’re very concerned about rental transactions cannibalizing ownership transactions,” he states.
The window between retail and VOD has been shortening over the last several years, with some companies more eager to make the jump than others. Warner is the forerunner, and has released most of its films on VOD day and date with DVD releases. The sales are with them, as they hold three of the top five spots in VOD sales over the last six months.
Lionsgate on the other hand, hasn’t had a single day and date release, though they’ve shortened their window significantly. President of digital at Lionshead, Curt Marvis is confident that the trend will only continue in the future, predicting “Ultimately, everyone knows all the studios will adopt a day and date position over time.”
Source: Video Business
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