With the recent shake-up of many industries, Entertainment has been one of the industries that has been shaken up the most. Films originally scheduled for theatrical release are either pushing release dates back a year or released directly to streaming services. In almost all cases this decision has to be made blindly, with little data to predict if consumers are willing to pay for new movie releases on streaming platforms and how much they are willing to pay.
In a recent survey, Streamlytics analysts were able to learn more about what consumers will and won’t do during this unprecedented time. What we learned:
- It’s 50/50. About half of consumers are willing to pay for new movie releases direct to streaming.
- Of the consumers willing to pay 52% would pay $5.99 or less; 32% would pay between $5.99 and $9.99.
- Only 1% of consumers were willing to pay $19.99 or more.
It’s important to note that many studios are opting for higher price points (about $19.99) for new movies released to streaming. While this may be equivalent to a movie ticket, consumers aren’t likely to pay. There is an opportunity to recoup lost revenue by focusing on scale versus price point. Finally, innovation is key to survive in this climate and consumers know this. In fact, 21% of consumers would pay a monthly subscription to have access to all new movie releases… surely a new opportunity for the bold and brave.