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Online Streaming As Profitable As TV, Disc Sales By Charging Just a $15 Flat Fee
Lucas123 writes "A new report shows that if movie production houses charged a $15 monthly fee to just 45% of the world's online subscribers, they could rake in just as much cash as they currently do through TV downloads and disc sales. That equates to $29.4 billion. 'Movie producers have little to fear from online distribution in the long term,' the report states. 'It is the distribution part of the movie business that should be worried because online distribution will replace a sizable portion of their current industry.' According to the report's hypothetical model, the $15 fee would offer open access to all movie content — meaning instant online access to all movies that have been ever produced, 'along with new releases as they come out.'"
That's the excuse MPAA will use now.
$5 for the owners of Pirate Bay, $15 for the media companies to split.
My check for this month's in the mail. Now, go away, **AA, and leave me alone.
What I can't figure out is why they're not offering two downloadable, DRM-free versions of their content: one that's free-as-in-beer but contains ads, much like peole get from their cable subscriptions now, and a second 'premium' version that is ad-free for a nominal charge. Make both versions easy to access via a hosted torrent site, with value-added tools such as offering the ability to track new episodes of favourite programs, or notify / auto download when available for upcoming titles. Not only would the end-user love it, the distributors could track the popularity of shows/movies even before they're released and negotiate ad revenues accordingly.
Sure, the premium version will get shared around somewhat, but at least the average Joe has a place where they can go to directly support shows/movies they like, and in the end they have a useful commodity that they can actually say they own: can back up as often as they like, play on any device, can alter it if needed / desired, or can lend to a friend or family member without hassle. I would pay for such an unencumbered file in a heartbeat, if it were reasonably priced (say a buck or two for an episode, up to $5 for a movie...approximately $2 per hour of entertainment sounds about right), and I'd use the free ad-supported versions to review new shows and see if I'd like them...I would easily spend over $15 a month just on the shows I like now :)
The proposed streaming model is great...if your customer has access to reliable, unlimited broadband wherever they might want to watch your content, and is willing to only watch the content on devices that work with your particular streaming protocol. Thing is, with people getting more and more tech savvy, even the theoretical average Joe is starting to realize that they don't have to put up with that crap if they don't want to...
"I love animals! Some are cute, others are tasty, what's not to like?" - Betsy Schroeder, Jeopardy contestant
The World Wrestling Entertainment (WWE) is about to switch to this model on February 24th. With their new WWE network, subscribers will have 24/7 HD access to all their past content and pay-per-views for $9.99/month. This includes not only cable but also internet streaming to android and iOS devices. Since most of their monthly pay-per-views have cost between $40 - $50 each, an annual subscription of $120 would easily pay for itself. They are betting that the subscription numbers will more than make up for the current pay-per-view income. It will be interesting to see if their model is successful and if it is, will the studios see the light?