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Summary:

Raising the price of HD movies on VOD and releasing them the same day they come out on DVD would be a boon to the industry, according to a new survey from consulting firm Oliver Wyman. The company found that consumers would be willing to spend […]

Raising the price of HD movies on VOD and releasing them the same day they come out on DVD would be a boon to the industry, according to a new survey from consulting firm Oliver Wyman. The company found that consumers would be willing to spend $7 to $9 for an HD movie on demand if released at the same time as the DVD.

Currently, there’s a window between the initial DVD release date and when films are available on demand. The prices of a standard definition film rental on demand (on Comcast) is $4.99, while HD films are $5.99. Oliver Wyman predicts that raising prices and shutting the release window would get people to watch, on average, three more movies a year, boosting consumer spending by between $5 billion and $10 billion by 2010.

Is it worth it? Would you pay that much for faster access to movies and a better picture? Nine bucks seems a little steep for me, but what do you think? Take our poll and leave a comment.

  1. Cheap-Skate McGhee Tuesday, April 15, 2008

    I’d pay $9 max for an HD VOD release a week after national theatrical release. By the time it’s on DVD it’s already on bittorrent for free.

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  2. This misses the point entirely. For a small increase I can pre-order the DVD which will be higher quality and include extras. Day and Date for theatrical release is something I’d like to see — and would gladly pay for.

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  3. $9.00? I’m back at the theatre or wait it out until the DVD shows up at the Walmart bargain bin.

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  4. Why don’t you have lower priced options on the survey? I couldn’t vote because I wouldn’t even pay $5 to rent an HD movie.

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  5. [...] NewTeeVee has a bit on the alleged potential for Day and Date for VOD with DVD releases. Raising the price of HD movies on VOD and releasing them the same day they come out on DVD would be a boon to the industry, according to a new survey from consulting firm Oliver Wyman. The company found that consumers would be willing to spend $7 to $9 for an HD movie on demand if released at the same time as the DVD.[NewTeeVee] [...]

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  6. Chris Albrecht Tuesday, April 15, 2008

    @Peter,

    I know!

    @Davis,

    I didn’t include a lower option because in a world where everyone wants content for free, of course people would prefer to pay a dollar. So I kept it at around the same price as it is now.

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  7. Yes everyone would like to pay a dollar, and I do at RedBox every week. I even get a free movie every Monday. It won’t be until they can be matched that I will order them online. So, Yes everyone would request the lowst price, but at least give me the option of what is out there now.

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  8. Most people have no clue when DVDs are released and won’t realize that they’re getting it “sooner.” They’ll only see the price increase. If HD movies were released on VOD at the same time as the theatrical release people would be engaged because of the promotional campaign for the movie and then might pay more. Any time after the initial theatrical release is “later.”

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  9. Not a chance. I will go to a movie theater and catch the movie if I really want to see it. If not I will wait for the DVD. HD just is not that important for me in a movie. Sporting event yes but not a movie.

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