A leading consultancy is warning operators are fast approaching the ceiling for the amount viewers are willing to pay in purchasing a VOD movie.
Omdia’s latest Consumers and Movie Windows report says its survey found 57% of US online adults were willing to pay a premium for early access to the latest movie releases. The average maximum spend is currently $14.16 , with consumers only willing to pay $1 more.
However in households of 4 with children under the age of 18, 71% are willing to pay for PVOD at an average price of $20.07. Within this consumer group, those that visited the cinema more than six times a year prior to the pandemic are willing to pay $28, approximately the same price of a family cinema ticket.
“It is clear that the demand for content is continuing to increase across all consumers and whilst studios are reacting to this demand by providing more new content to SVOD, there is a balancing act that needs to continue,” said Fateha Begum, principal analyst, Omdia.
The consultancy also highlights opportunities for repeat purchase with over 93% of 2020 PVOD users expressing interest in further PVOD purchasing with nearly one in two willing to pay up to $20 per release.
However, there was a warning that this same group of ‘cinema power users’ were also gravitating towards unauthorised websites at an increasing rate.