Premium video-on-demand

Definition

Premium video-on-demand (PVOD) is a distribution model that allows consumers to rent or purchase newly released films for viewing at home, typically at a higher price than standard video-on-demand offerings. This model emerged as a response to changes in viewing habits and the impact of digital technologies, allowing studios to monetize their films outside of traditional theatrical releases.

5 Must Know Facts For Your Next Test

1. Premium video-on-demand typically features films that have been recently released in theaters, giving consumers the chance to watch them at home shortly after their theatrical run.
2. The pricing for PVOD rentals is usually higher than traditional VOD options, often ranging from $19.99 to $29.99 for a 48-hour viewing period.
3. PVOD gained popularity during the COVID-19 pandemic when theaters were closed, prompting studios to seek alternative revenue streams for their film releases.
4. This model can benefit both studios and consumers by providing immediate access to new releases while generating additional revenue outside of box office sales.
5. The success of premium video-on-demand has led some studios to consider simultaneous releases in theaters and on PVOD platforms as a viable strategy moving forward.

Review Questions

• How has premium video-on-demand changed consumer behavior regarding film viewing?
  • Premium video-on-demand has significantly shifted consumer behavior by providing immediate access to new films from the comfort of home. With higher pricing than standard rentals, consumers are willing to pay for the convenience of watching newly released films without waiting for them to become available on other platforms. This has led to a preference for home viewing over traditional theater experiences, especially during situations like the COVID-19 pandemic when theaters were closed.
• Evaluate the impact of premium video-on-demand on the traditional film industry and its box office revenue.
  • Premium video-on-demand has introduced a competitive dynamic that challenges the traditional film industry and its reliance on box office revenue. While PVOD provides an additional revenue stream for studios, it also risks cannibalizing theater ticket sales by offering immediate access to new releases at home. The balance between maximizing profits through PVOD and maintaining audience engagement with theaters is now a critical consideration for film distributors.
• Assess how digital technologies have facilitated the rise of premium video-on-demand and its implications for international cinema.
  • Digital technologies have played a crucial role in the rise of premium video-on-demand by enabling seamless streaming and distribution of films directly to consumers. This shift has implications for international cinema, as filmmakers can reach wider audiences across borders without the constraints of theatrical release windows. As PVOD becomes more mainstream, it offers opportunities for international films to gain visibility in markets where they may not have had a strong theatrical presence, thus reshaping global viewing habits and distribution strategies.

Related terms

Video-on-demand: A service that allows users to access video content at their convenience, typically through subscription or rental models.

Streaming services: Platforms that provide digital content, including movies and TV shows, delivered via the internet for instant access.

Box office revenue: The income generated from ticket sales at movie theaters, which has historically been a primary revenue source for films.