A study conducted by Oliver Wyman, an international managing consulting firm, showed that a set price point of $7 to $9 for next-gen VoD and internet movie rentals could create substantial market growth by 2010 reports Business Wire. Currently it costs you $4 to watch a standard DVD or VoD movie. It seems that the consumer wouldn't mind paying nine bucks over today's four dollars if this wouldn't be in standard definition, but in high-definition and released on the same day as the DVD version.
The study shows that releasing HD VoD and Internet movies on the same day as the DVD release, gives a major growth opportunity. In the first place because people are willing to watch these and pay more, and secondly because the expanded availibility will increase the overall movie ownership. Wyman's study says that this would make US consumers watch three more movies per year, which will increase consumer spending with $5 billion.
The study was web-based and conducted in the fourth quarter of 2007 with 2,000 consumers. Olivier Wyman used advanced technologies to simulate actual buying decisions.
