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Old 03-22-2012, 08:13 PM   #41  
High Definition is the definition of life.

Join Date: Dec 2011
Posts: 509

Originally Posted by mikemorel View Post
Perhaps more concerning is the following:

Legal online viewings of films will more than double to 3.4 billion this year from 1.4 billion in 2011, IHS said today in a statement. Physical viewings of DVDs and Blu-ray discs will shrink to 2.4 billion from 2.6 billion, according to the forecast.
...Consumers paid an average of 51 cents for every movie consumed online, compared with $4.72 for physically purchased videos, IHS found.
Wow!! 3.4 BILLION digital views. That makes 2.4 billion physical views look so tiny.

But wait...that 3.4B only brings in $.51/movie.

3.4B*.51 = $1.734B. Ouch. Not much $$.

What about discs you ask? Oh, they bring in $4.72/movie.

2.4B*$4.72 = $11.328B

Hmmm...$11.328B versus $1.734B. Quite the difference. Digital: a billion more views yet almost $10 BILLION less. Double Ouch. Not much money to be made digitally.

Why is digital so low you ask?

Unlimited-streaming subscription plans, including those offered by Netflix Inc. (NFLX) and online retailer (AMZN)’s Prime service, accounted for 94 percent of all paid online movie consumption in the U.S. last year, Englewood, Colorado-based IHS said. Streamed movies have been replacing video discs, much as streamed music is overtaking compact audio discs.
This sounds great and all...but the movie industry simply can't survive on a "format" that brings in a whopping 51 cents per view for a measly $1.734B dollars.

$7.99/month unlimited plans simply cannot sustain Hollywood. In fact one could argue they are helping to kill it by devaluing the price of movie consumption. Home video has declined as Netflix has increased. Coincidence?

Last edited by bombsnizzle; 03-22-2012 at 08:18 PM..
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