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Study shows low interest in Transactional VOD

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    Study shows low interest in Transactional VOD

    While UltraViolet has the digital copy market locked up, a new study suggests that there is little consumer interest to purchase or rent individual titles on services like vudu. Subscription streaming interest is much higher. I think part of the reason is that studio's make so many great movies available on NetFlix. If the conclusion is that few consumers are purchasing movies on VOD services, then my hope that Disney would implement UV may be premature.


    I'm not quite sure how to interpret the data. I think we should add 10 + 9 + 8 + 7 to get 34% who would pay to watch a program, but I'm not sure. This study also contradicts a study a few weeks ago that EST grew 50% from last quarter. This study says it only grew 3%.

    http://www.homemediamagazine.com/vod...onal-vod-31990

    #2
    Re: Study shows low interest in Transactional VOD

    Correction, this article is talking about rentals only. I think purchasing movies is probably much more common than rentals because the price to purchase digital copies is sometimes cheaper, or at least the same price, as purchasing physical media. However, rentals are more expensive than traditional rentals of DVDs or Blu-rays. More than three times the cost to rent online. If renting via VOD is going to catch on then one of two things must happen...either they need to come down on rental pricing or all DVD rental services need to be put out of business.

    Comment


      #3
      Re: Study shows low interest in Transactional VOD

      You have a good point about the price of online rentals. However, what's unclear is if the survey asked about rentals only, or sell-through as well.

      Comment


        #4
        Re: Study shows low interest in Transactional VOD

        Originally posted by echopulse View Post
        You have a good point about the price of online rentals. However, the survey doesn't say that the survey was only asking about rentals.
        Yes it does.

        "Just 9% of consumers would pay to rent a select movie or episodic program on a connected TV"

        "Consumer demand for renting movies and TV shows on connected devices, including television, remains low despite home entertainment?s transition to digital distribution, according to a new study."

        These first two sentences set the context for everything after it.

        Comment


          #5
          Re: Study shows low interest in Transactional VOD

          The reason transactional digital video is slow to catch on is because physical media still has price, content, and quality on its side while digital video only has the convenience factor. I mean for the price of ONE digital HD rental I can rent FOUR Blu-ray's from Redbox and have better audio and video quality as well. And if I want to own a movie digital it's the same price (sometimes even more) as physical but I don't get all the perks of physical media (better quality, more content/extra, free UV copy).

          If studios want transactional video to catch on they to do one simple thing: lower the prices. It's been proven time and time again that consumers are more than willing to pay for something digitally if the price is right. Currently the price to own a digital movie is completely outrageous; $10-15 for a catalog title and $15-20 for a new release? Are you joking? You honestly expect consumers to shell out the same amount of money as its physical counterpart but for less content and less quality? The reason why D2D and trading/buy UV codes is so popular is because the prices are fair and reasonable. Digitally owning just the movie itself should be no more than $7.99.

          I'm a big supporter of digital and Ultraviolet but if you're asking consumers to shell out the same amount of money for less content and less quality then of course consumer interest will be low.

          Comment


            #6
            Re: Study shows low interest in Transactional VOD

            Originally posted by MaskedMan
            The only case I know where episodic tv program was rented by the episode is at Amazon in the case of Inspector Morse, you can rent each episode for $.99 for 24 hours.
            You can rent by episode on Vudu also. I will not mention others to prevent my reply from being deleted.

            Comment


              #7
              Re: Study shows low interest in Transactional VOD

              Yeah, I believe that. I don't have much interest in renting movies either, because the cost is quite a bit higher than Redbox. Netflix and HBO play a factor in that as well. I often don't have time to catch titles that I'm not as interested in before they end up on one of those outlets. I think a rental-to-purchase upgrade price would be wise as well. Rent for one price and if you decide to buy it, give us a price break close to or equal to the rental price.

              I love the D2D program, but that and the occasional straight purchase are all I'm really interested in. The reason is absolutely price. If the prices were more in line with physical media, I'd be all for it, but right now it is often cheaper to purchase an older title on DVD or Blu-Ray and convert it via D2D than it would be to buy it from Vudu directly. It may require a bit more effort, but I can also turn around and sell the physical media for a couple of bucks if I so desire. $12.99-$15.99 for a new release HDX copy would be my sweet spot if the UV retailers wanted me to buy more, but as it is, I can usually get a new release physical copy for less than they ask and usually get the digital copy included as well.

              Comment


                #8
                Re: Study shows low interest in Transactional VOD

                Originally posted by YankeeGator6 View Post
                Yeah, I believe that. I don't have much interest in renting movies either, because the cost is quite a bit higher than Redbox. Netflix and HBO play a factor in that as well. I often don't have time to catch titles that I'm not as interested in before they end up on one of those outlets. I think a rental-to-purchase upgrade price would be wise as well. Rent for one price and if you decide to buy it, give us a price break close to or equal to the rental price.

                I love the D2D program, but that and the occasional straight purchase are all I'm really interested in. The reason is absolutely price. If the prices were more in line with physical media, I'd be all for it, but right now it is often cheaper to purchase an older title on DVD or Blu-Ray and convert it via D2D than it would be to buy it from Vudu directly. It may require a bit more effort, but I can also turn around and sell the physical media for a couple of bucks if I so desire. $12.99-$15.99 for a new release HDX copy would be my sweet spot if the UV retailers wanted me to buy more, but as it is, I can usually get a new release physical copy for less than they ask and usually get the digital copy included as well.
                Lately I have noticed several new release titles are cheaper to purchase the digital copy as opposed the physical DVD or Blu-ray. I decided to save some money and buy the digital copies of Fast and Furious Six and Despicable Me 2 on Vudu. Speaking of Despicable Me...last week you could have purchased the SD version from that other service for only $5.00.

                I don't see purchasing movies as a problem, except for the pricing on older releases. I also strongly feel that we should be able to burn a copy of our movies to disc or some kind of future technology similar to an MP3 player for movies that will provide us with more freedom over where, when, and how we watch our movies.

                Movie rentals is the problem. Rentals is what the survey seems to be talking about also. Rentals are too expensive and 24 hours is not always long enough. In my opinion rentals should be three dollars, or less, and should be good for up to 48 hours after you start watching the movie.

                Comment


                  #9
                  Re: Study shows low interest in Transactional VOD

                  For me, the only way I'd consider renting anything from Vudu is if they gave you a discount (of the rental fee) if you purchased the film for your account within the next 48 hours.

                  As for purchasing films brand-new on Vudu, haha NO. There's no way in hell I'm paying $24 a two-hour movie and I don't get anything with it (like a Blu-ray disc). I'll wait until it's on D2D and get it then. For me, the sweet spot is $5 for HDX. I can't see spending any higher than that for something I don't have the physical product of.

                  Comment


                    #10
                    Re: Study shows low interest in Transactional VOD

                    Originally posted by SpeedRacer2K View Post
                    For me, the only way I'd consider renting anything from Vudu is if they gave you a discount (of the rental fee) if you purchased the film for your account within the next 48 hours.

                    As for purchasing films brand-new on Vudu, haha NO. There's no way in hell I'm paying $24 a two-hour movie and I don't get anything with it (like a Blu-ray disc). I'll wait until it's on D2D and get it then. For me, the sweet spot is $5 for HDX. I can't see spending any higher than that for something I don't have the physical product of.
                    I agree with you on paying $24 for a movie that is only available in the cloud. But would you pay $15 when the Blu-ray is is $24? I have been seeing a difference in price lately. I had two Blu-ray preorders and when I saw Vudu's price I cancelled those preorders and bought the digital copy from Vudu. I kept my preorder for Wolverine and I will pay an extra $7 to have the disc.

                    Older releases that are priced higher than $9.99 is where I have a problem.

                    We also pay our internet provider a monthly fee to have access to the internet. As streaming becomes more popular and consumers use more and more of these internet provider's resources I would expect the cost of those services to go up. I wish Obama would have left health care alone and focused on giving everyone free internet! Then again, I don't think I would want to use anything developed by the government.

                    Comment


                      #11
                      Re: Study shows low interest in Transactional VOD

                      I rarely go over 9.99 for an HDX film, or 4.99 for an SD one. I will buy a used DVD for 3 bucks and D2D upgrade it to HDX for about 7.00 total. But I have pretty much completed my UV library until MGM and Disney join in.

                      Comment


                        #12
                        Re: Study shows low interest in Transactional VOD

                        Mr. EP,

                        I think this is the only real threat to UltraViolet. I think the trend to digital distribution is unstoppable at this point. However, the jury is still out in relation to if consumers will let their content be picked for them in a smorgasbord, or if they will elect to own static content as well as rent new releases via UV.

                        The methods are known as SVoD for the smorgasbord approach, iVoD for the rental service, and EST for owned content.

                        I do think everyone will admit that currently among these three approaches, SVoD has the high ground with consumer acceptance. Your parents would fall into the acceptance of iVoD fitting their tastes, since they like to only watch a given title once. Owning digital rights for them has no value.

                        I like to have revolving content, but I also like my static library. I think since SVoD had the lead out of the gate, their model has more consumer acceptance then iVoD and EST. As you point out in your other thread, UV is only a mere two years old though. I sincerely believe it will catch up and find itself on par with SVoD as physical media distribution continues to wane.

                        Comment


                          #13
                          Re: Study shows low interest in Transactional VOD

                          Originally posted by echopulse View Post
                          I rarely go over 9.99 for an HDX film, or 4.99 for an SD one. I will buy a used DVD for 3 bucks and D2D upgrade it to HDX for about 7.00 total. But I have pretty much completed my UV library until MGM and Disney join in.
                          Me too, I rarely go over $9.99 on any site for 1080p and I don't do SD. I only have one SD movie that is not available in HD.

                          Comment


                            #14
                            Re: Study shows low interest in Transactional VOD

                            For action, sci-fi, adventure, fantasy, animated, or any movie with special effects, I always go for HD, but for romance, comedy, or drama I will elect to save a few bucks and get the SD. So out of 500 films I have about 150 SD films.

                            Comment


                              #15
                              Re: Study shows low interest in Transactional VOD

                              Another interesting study shows 73% never use Transactional VOD, though again, it specifically mentions rental, it does not rule out that EST is part of the data.

                              http://www.homemediamagazine.com/vod...onal-vod-32015

                              Comment

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