Micropayments Vs. Flat Fee

Not exactly on topic, but a new research by Park Associates shows that video-on-demand customers prefer monthly pricing models than pay-per-view, something which has some parallels in online content sector as well.

According to Michael Greeson, senior analyst at Parks Associates: “From a top-line perspective on our research, consumers seemed equally divided in their preference for the one-fee/unlimited viewing pricing model versus the pay- per-use model. However, when we separated consumers based on their level of interest in VOD and then compared their preferences, we found that the consumers who will be the first to adopt VOD services clearly endorse the monthly subscription model, which should give service providers clear guidance regarding the structure of the first VOD offerings.”

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