More than 50% of Facebook users with broadband connectivity said they would not pay $1.99 to watch a recently released movie on a social networking website, according to a Q3 2011 survey of 500 broadband households conducted by Parks Associates. About 12% said they would pay the fee for a 48-hour window.
That percentage stayed the same for rentals costing $2.99, but then increased among naysayers to 58% for the $3.99 price point. About 60% of respondents said they would not pay $4.99 for a new-release movie on VOD, compared with about 10% of respondents who said they would pay the fee.
To date, only about 15 movies have been made available on Facebook by studios for transactional VOD — a practice that began March 8, 2011, with the availability of The Dark Knight from Warner Home Video. Facebook offered the title for rent for 30 Facebook credits or $3.
“Users just don’t want to pay and are not very interested in accessing movies on social networks,” Parks research analyst Pietro Macchiarella said during the July webcast.
While movie rentals remain a work in progress on Facebook, social media is a growing tool for recommending movies and TV shows to watch, according to Parks. Indeed, the appeal of social media with regards to movie recommendations is what prompted Warner last year to acquire Flixster.com along with movie review site, RottenTomatoes.com.
From the article, "Facebook: No VOD Attraction" by Erik Gruenwedel.
