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.
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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.
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Via Oliver Wyman