DVD | THE CABLE PIPELINE

Video Content: Movie Theatre’s still King-Kiosk and Cable watchers on the Increase

Courtesy Market Force Information, Inc

According to research performed by Market Force Information, Inc. movie watchers still prefer going out to enjoy the Theatre movie experience for various reasons, including:

Experience of watching movie on the Big Screen
Not wanting to wait to see new releases
Enjoying a movie with friends
Movie Theatres were a good venue to take a date

It seems like experiencing a new movie release has not changed in the many years since its inception; consumers view this as a justifiable and entertaining expense, at least some say every month. 70% of 3,000 responders indicated they would go to a theatre in the first three months of 2010 and one-third indicated a willingness to see three or more by the end of March.

Next in line for most viewers is the Kiosks where movie watchers rent movies from a retail outlet like RedBox with more than 40% saying they use this type service, while 26% of these consumers indicating a willingness to increase use of this venue.

Netflix and Blockbuster Online is being used by 27% of surveyed consumers with 21% saying they will increase their consumption.

Rounding out the movie content viewing experience is the Cable TV Industry with 15% saying they watched

Courtesy Market Force Information, Inc

movies through their monthly subscriptions with 18% indicating that their viewing would increase on this venue.

What does this research indicate about consumer habits and spending for video content-(movies)? The marketing adage of being first to market with new content evidently means something to the buyer. However, companies should delve deeper into consumer demographics, starting with age, income, and location. Which of the 3,000 surveyed are most likely to use each venue? Then target those consumers who are most likely to use your venue with the content they want to see most often.

But keep in mind there is a pecking order here. New Movie Releases are first sold to Theatres, then the Video-DVD markets, and thereafter released to Cable Companies. So, there is a compelling reason for certain consumers to visit Theatres, then Rentals, and finally Cable.

Advertising also plays a large role in consumer spending on video content. Respondents indicated by 70% that television was their primary source of learning about new movie releases, followed by movie-trailers, and last learning from friends and written reviews.

Although the Cable Industry is not first in the pecking order for new content, their venue is growing and will continue to increase with the right consumer data, pricing, and target marketing. At least cable channels are making revenues from the heavy ad placement of the studios.