Video-on-demand buy-rates can climb as much as 50% when the movies reach VOD platforms less than 30 days after hitting home-video shelves, according to an In Demand analysis of more than 100 Hollywood titles bowing on PPV in 2003.
As a group, titles with windows shorter than 45 days performed an average of 50% better than titles released 45 days after home video, according to the research.
The difference in buy-rates was even more pronounced when the comparison included titles with release dates longer than 45 days.
All titles examined for the study had an average domestic box office of $50 million and were released to VOD/PPV between 30-90 days after the home-video window.
In Demand president Steve Brenner said the numbers confirm what the company has emphasizing to the Hollywood community for years: PPV and VOD can be a viable revenue source for the studios if it has the ability to compete more equitably with the juggernaut home-video industry.
"For VOD to fulfill its full potential, it’s going to need shorter windows," he said. "All we want to do is compete on a level playing field. If our technology and manner of delivery is more convenient for the consumer, then we should win."
Studios, though, remain reluctant to jeopardize their profitable home-video and DVD-rental businesses to support a yet-unproven technology in VOD. In 2002, home video and DVD rental generated $8.2 billion compared with $1.47 billion for the PPV/VOD business.
For more on VOD windows, please see R. Thomas Umstead’s story on page 8 of Monday’s issue of Multichannel News.