Would You Buy Fewer Commercials for $1?
Movies on-demand is another market segment with tremendous growth potential. Satellite and cable providers are providing more on-demand content all the time, including HD content. The research firm DIGDIA recently asked potential on-demand viewers about their preferences for watching movies at home. They were asked to rank, in order of preference, whether they'd prefer to pay $2.99 for a movie with ads, or $3.99 for a movie without, or buying the DVD.
The result was a landslide: 44% of respondents would rather pay $3.99 and watch their movies commercial free, while only 17% would take the 25% discount and watch the movie for $2.99. Buying the DVD came in a strong second place with 27% of respondents preferring that method of viewing, and while we know that's not free of ads for the content providers' fare, at least those trailers can be avoided in most cases!
Interestingly, while some computer companies are looking to media PCs as a new source of revenue, only 12% of the respondents in the DIGDIA survey preferred watching a movie on their PC vs. their TV.