The economic damage of PVOD piracy to businesses is real. Learn why spending millions of dollars on marketing can end up being a waste if your customers seek what you promote on pirate services.
By Rafael Rivera, Solutions Marketing Manager
Friday night, a long week behind us as our family considers (in truth strongly debates why we need to spend time together) what movie we could watch to unwind. We settle on Free Guy as a fun, age-appropriate option.
Next come a set of decisions I’m sure many families grapple with each weekend. First, where to watch. At the new cinema, a 15-minute drive away, roughly $17 a ticket + any food we decide to purchase. Or at home via PVOD. One glance from my better half and home it is.
Now, who’s offering the movie? A quick search provides multiple PVOD options, but it looks like a purchase-only choice vs. a rental. The crowd is getting restless, so purchase it is, serve popcorn, lights off, and hit the play button.
It sounds simple enough, but that process took us more than an hour.
For content owners and distributors, the decision-making process is obviously much more complicated. Here are five important considerations and challenges of PVOD content distribution:
1) Distribution business model
With the easing of restrictions in many areas, the first consideration is the distribution business model. Cinema exclusive? If so, how long of an exclusivity period? Or perhaps a day and date hybrid model? Perhaps a mixture depending on the backlog of titles held back during the pandemic.
2) Variance by country
Will the distribution model vary by country? Typically, the answer is yes, given that each country/geography may have existing window agreements that dictate distribution terms.
3) Marketing considerations
Indeed, content owners and distributors want to maximize exposure, driving consumer desire and revenue. Depending on the model, marketing strategies may vary, particularly by region, and undoubtedly evolve over time.
4) Financial considerations
The economic damage of PVOD piracy to businesses is real, with tens of billions of dollars of content value disappearing every year. All the internal meetings on distribution strategy and spending millions of dollars on marketing can end up being a waste if your customers seek what you promote on pirate services.
5) Broad impact potential
Piracy knows no boundaries. Developing a clear anti-piracy strategy can help content creators and distributors protect their investments and generate the revenue investors expect.
No question, there are many opinions, stakeholders, and considerations to take into account. On the bright side, there are solutions available to help. As “Guy” famously repeats in the movie, “Don’t have a good day, have a great day!” and download our eBook to learn more about how NAGRA works with studios and content creators to fight against content and service piracy. We can provide depth of experience across technology, law enforcement, and intelligence gathering with a proven track record to ensure that your next movie or series release doesn’t become a revenue victim.
