Will Releasing Movies Direct to Streaming Work?

  • Angela Benton
  • April 1, 2020

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.

About Angela Benton

Angela Benton is the Founder and Chief Executive Officer of Streamlytics, which uses first-party media consumption data to bring transparency to what people are streaming on today’s most popular streaming services while helping consumers own their data in the process. Prior to her role at Streamlytics she founded the first accelerator for minorities globally in 2011, NewME was acquired in December 2018. To date, Ms. Benton has received numerous accolades, some of which include Goldman Sachs’ 100 Most Intriguing Entrepreneurs, Fast Company’s Most Influential Women In Technology, Business Insiders’ 25 Most Influential African-Americans in Technology, Marie Claire’s 50 Women Who Rule, and many more. She’s been featured in numerous national and international media outlets including CNN, MSNBC, Bloomberg, Inc, Forbes, Good Morning America, and the Wall Street Journal where she was a featured essayist alongside Mark Zuckerberg for the paper’s 125th Anniversary edition on The Future of Entrepreneurship. At the helm of Streamlytics, Angela continues to uncover untapped spaces in technology and innovation.