Summary
On-demand video has historically been limited to older content that had long lost its sales luster, a reasonable strategy given high demand for new DVDs and record-breaking profits for Hollywood studios. But with DVD sales tanking and emerging channels (i.e., digital distribution) failing to make up for the revenue gap, a consensus is developing that distribution strategies must change, and soon.
This report explores two early release windows and evaluates consumer receptivity to purchasing or renting “premium” VoD titles at various price points—in particular, releases same-day and a week-after. Yes, these are very aggressive release windows, but if demand cannot be supported at these consumer-optimal release dates, it is unlikely to be supported for later releases given similar fees.
Table of Contents
Key Findings
1 Introduction
1.1 Preliminary Comments
1.2 Methodology
2 Premium Video Rental Windows – The Consumer Speaks
2.1 General Value of Early Rental Windows
2.2 Price/Demand Trade-Offs of Same-Day and Week-After Rentals
2.2.1 Same-Day Releases
2.2.2 Week-After Releases
2.2.3 Comparing Demand and Price Sensitivity
2.3 Impact of Same-Day Rentals on Future Rental/Purchasing Behavior
2.4 Specific Value of Same-Day Purchasing
3 Interest in Early Rental Windows by Frequency of Theater Attendance
3.1 Frequency and Windows of Theater Attendance
3.2 Appeal of Early Rental Windows
3.2.1 Same-Day Rentals
3.2.2 Week-After Rentals
3.3 Impact of Additional Premiums on Early Rentals
3.4 Impact of Same-Day Rentals on Future Rental/Purchasing Behavior
3.5 Specific Value of Same-Day Purchase
4 Interest in Early Release Windows by DVD/Blu-ray Rental
4.1 DVD/Blu-ray Rental Habits
4.2 Appeal of Early Rental Windows
4.2.1 Same-Day Rentals
4.2.2 Week-After Rentals
4.2.3 Comparison
4.3 Impact of Additional Premiums on Early Rentals
4.4 Impact of Same-Day Rentals on Future Rental/Purchasing Behavior
4.5 Specific Value of Same-Day Purchase
5 Interest among DVD/Blu-ray Buyers
5.1 Disc Purchasing Habits
5.2 Appeal of Early Rental Windows
5.2.1 Same-Day Rentals
5.2.2 Week-After Windows
5.2.3 Comparison
5.3 Impact of Additional Premiums on Early Rentals
5.4 Impact of Same-Day Rentals on Future Rental/Purchasing Behavior
5.5 Specific Value of Same-Day Purchase
6 Digital Rentals
6.1 Quantifying the Use of On-Demand Rental Services
6.2 Online VoD-Related Insights
6.2.1 Value of Early Rental Windows
6.2.1.1 Same-Day Rentals
6.2.1.2 Week-After Windows
6.2.1.3 Comparison
6.2.2 Impact of Additional Premiums on Same-Day Premium Rental Demand
6.2.3 Impact of Same-Day Rentals on Future Rental/Purchasing Behavior
6.2.4 Specific Value of Same-Day Purchase
6.3 PayTV VoD-Related Insights
6.3.1 Appeal of Early Rental Windows
6.3.1.1 Same-Day Rentals
6.3.1.2 Week-After Windows
6.3.2 Comparison
6.3.3 Impact of Additional Premiums on Same-Day Rentals
6.3.4 Impact of Same-Day Rentals on Future Rental/Purchasing Behavior
6.3.5 Specific Value of Same-Day Purchase
List of Exhibits
Exhibit 1 – Value 0f Same-Day and Week-After Premium Rentals
Exhibit 2 – Likely Demand for Same-Day Rentals at $5, $10, $15, and $20 Extra
Exhibit 3 – Likely Demand for Week-After Rentals at $5, $10, $15, and $20 Extra
Exhibit 4 – Comparing Likely Demand for Same-Day and Week-After Premium Rentals
Exhibit 5 – Impact of Early Rentals on Future Movie Viewing Behavior
Exhibit 6 – Likely Additional Purchase Price for Early-Release Movie Purchase
Exhibit 7 – Number and Time of Theater Visits During Last Six Months
Exhibit 8 – Frequency of Theater Attendance and Value of Same-Day Rentals
Exhibit 9 – Frequency of Theater Attendance and Value of Week-After Rentals
Exhibit 10– Frequency of Theater Attendance and Appeal of Same-Day Rentals with Extra Fees
Exhibit 11– Frequency of Theater Attendance and Appeal of Week-After Rentals with Extra Fees
Exhibit 12 – Impact of Same-Day Rentals on Future Rental/Purchasing Behavior by Frequency of Theater Attendance
Exhibit 13 – Reasonable Same-Day Purchase Premium by Theater Attendance
Exhibit 14 – Number of DVDs and Blu-ray Discs Rented in Last Six Months
Exhibit 15 – Frequency of Disc Rental and Value of Same-Day Rentals
Exhibit 16 – Frequency of Disc Rental and Value of Week-After Rentals
Exhibit 17 – Same-Day versus Week-After Top 2s Across Historical Disc Rentals
Exhibit 18 – Historical Disc Rentals and Same-Day Rentals with Extra Fees
Exhibit 19 – Historical Disc Rentals and Week-After Rentals with Extra Fees
Exhibit 20 – Impact of Same-Day Rentals on Future Movie Behavior among Disc Renters
Exhibit 21 – Reasonable Same-Day Purchase Premium by Rental Frequency
Exhibit 22 – Number of DVDs and Blu-ray Discs Purchased in Last Six Months
Exhibit 23 – Disc Purchases and Value of Same-Day Rentals
Exhibit 24 – Disc Purchases and Value of Week-After Rentals
Exhibit 25 – Comparison of Same-Day and Week-After Top 2s Across Historical Disc Purchases
Exhibit 26 – Disc Purchases and Same-Day Rentals with Extra Fees
Exhibit 27 – Disc Purchases and Week-After Rentals with Extra Fees
Exhibit 28 – Impact of Same-Day Rentals on Future Rental/Purchasing Behavior among Disc Buyers
Exhibit 29 – Reasonable Same-Day Purchase Premium by Disc Purchase Frequency
Exhibit 30 – Number of PayTV Operator On-Demand Movies Rented in Last Six Months
Exhibit 31 – Online On-Demand Rental Frequency and Value of Same-Day Rentals
Exhibit 32 – Online On-Demand Rental Frequency and Value of Week-After Rentals
Exhibit 33– Comparison of Same-Day and Week-After Top 2s Across Historical On-Demand Use
Exhibit 34 – Historical Online On-Demand Rentals and Same-Day Rentals with Extra Fees
Exhibit 35 – Historical Online On-Demand Use and Week-After Rentals with Extra Fees
Exhibit 36 – Impact of Same-Day Rentals on Future Rental/Purchasing Behavior among Online VoD Users
Exhibit 37 – Reasonable Same-Day Purchase Premium by Online VoD Rental Frequency
Exhibit 38 – PayTV On-Demand Rental Frequency and Value of Same-Day Rentals
Exhibit 39 – PayTV On-Demand Rental Frequency and Value of Week-After Rentals
Exhibit 40 – Comparison of Same-Day and Week-After Top 2s Across Historical PayTV On-Demand Use
Exhibit 41 – Historical PayTV On-Demand Rentals and Same-Day Rentals with Extra Fees
Exhibit 42 – Historical PayTV On-Demand Use and Week-After Rentals with Extra Fees
Exhibit 43 – Impact of Early Rental Windows on Future Rental/Purchasing Behavior among PayTV VoD Users
Exhibit 44 – Reasonable Same-Day Purchase Premium by Disc Purchase Frequency