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Study Says Consumers will Pay $7 to $9 for Online Rentals

Study Says Consumers will Pay $7 to $9 for Online Rentals
 
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A study from management consulting firm Oliver Wyman says that consumers will be willing to spend $7 to $9 for earlier-release, HD video-on-demand and Internet rentals. According to the report the industry will has $5 billion plus growth opportunity in the U.S. and that DVD cannibalization would be minimal.

That amount is a $4 premium over standard DVD or VOD rental prices. The study also claims that Blu-ray discs will drive 6% growth of packaged media by 2010 even as VOD and Internet rentals grow. According to the study retailers could also charge an extra $2 for a DVD with a digital copy of the film that can be moved to other sources.

While I agree with the extra $2 for a digital copy of a film, I for one won’t be paying $9 to rent a movie online. I can go to my local movie store and get two movies for that price. I would pay $6 or so for a HD rental on the day the film releases and I think lots of movie fans would. Charge me much more than that and I’ll keep driving the 2 miles to the movie store.

Via Oliver Wyman

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<a href="/latest_stories/all/all/3" rel="author">Shane McGlaun</a>
Leading our review center, Shane McGlaun (Google) knows technology inside out. His extensive experience in testing computer hardware and consumer electronics enable him to effectively qualify new products and trends. If you want us review your product, please contact Shane.
Shane can be contacted directly at shane@i4u.com.

 

 

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