VUDU SUBSCRIPTION PLAN

[Rusdude]

Re: VUDU SUBSCRIPTION PLAN

I'd also like to see a subscription option -- either unlimited or X titles per ___ (week/month/etc.). Vudu can even get creative and sell packages aimed at certain groups, e.g.

Casual Viewer -- 3 New Releases (SD), 6 Catalog Titles (SD) - $xx.xx (say, 25-30% discount); HD add-on - $5.99;
Movie Buff -- 8 New Releases (SD), 16 Catalog Titles (SD) - $xx.xx (bigger discount, 40-60%); HD add-on - $14.99;
TV Pack -- any X episodes of any series (doesn't have to be same series) - (25-30% discount)
TV Junkie -- any 2X episodes - (40-60% discount).

The packages could be monthly or one-time (much bigger discount for recurring monthly plans, of course).

Obviously pricing is really the key here. If doing monthly packages, Vudu would have to walk a fine line between providing value and staying afloat financially. As with Netflix, they'd have to figure out how much people are actually going to use -- obviously, if everyone uses monthly services to the max, Vudu will bleed $$$.

[Chopper]

Re: VUDU SUBSCRIPTION PLAN

Forget what Netflix, Blockbuster, etc. are doing!

It comes down to this... can Vudu make a profit if they offer a $19.99 (or whatever $) all you can watch plan?

All they would have to do is take X number of Vudu owners, divided by the amount of revenue coming in.

If its less than $19.99 per person, its a no brainer. It will also potentially bring on a TON on new owners.

If thier current profit is greater than $19.99 per person, then all they would have to raise the monthly sub. rate to an amount that makes them profit. I can't see it going over $25-30. People just won't pay for it above that. At least not the majority, and that would be the key to this working.

I realize I am simplifying the equation, but it really does come down to profitability. I have a feeling there could definitely be a sweet spot for both Vudu and the Vudu customers to make something like this work.

[NA9D]

Re: VUDU SUBSCRIPTION PLAN

Forget what Netflix, Blockbuster, etc. are doing!

It comes down to this... can Vudu make a profit if they offer a $19.99 (or whatever $) all you can watch plan?

All they would have to do is take X number of Vudu owners, divided by the amount of revenue coming in.

But, not all of us want subscription plans. Your model assumes Vudu would force everyone into a plan. Perhaps there can be some quantity discount plan or something like that (ie: 10 movies a month for $20).

[redwein]

Re: VUDU SUBSCRIPTION PLAN

I prefer the current non-subscription plan as well.

[NA9D]

Re: VUDU SUBSCRIPTION PLAN

I prefer the current non-subscription plan as well.

I do see no problem with a subscription plan if it was optional. You could stay at pay as you go or you could subscribe and get X number of movies for the price. I really doubt it would be unlimited due to the licensing cost structure but I'm sure a reasonable subscription plan could be developed....

[HeadHodge]

Re: VUDU SUBSCRIPTION PLAN

I do see no problem with a subscription plan if it was optional. You could stay at pay as you go or you could subscribe and get X number of movies for the price. I really doubt it would be unlimited due to the licensing cost structure but I'm sure a reasonable subscription plan could be developed....

It's been over a year since I looked, but I think MovieLink or Vongo have those sorts of options. If someone wants to take the time to look, you should try those two sites.

I think Vongo is owned by Starz and MovieLink was just recently sold to BlockBuster.

[kikar]

Re: VUDU SUBSCRIPTION PLAN

I wouldn't mind seeing a subscription plan that included only catalog titles (movies and TV), and newer release films and TV shows having an additional rental/purchase fee.

[Riekl]

Re: VUDU SUBSCRIPTION PLAN

The fact that no company has instituted a subscription plan when it is an obvious business model tells me its not doable.

The reason is likely simple, you can do it with DVD rentals because the rental companies pay a fixed cost per DVD they rent out whereas in the VOD market the studios get paid for every rental.

Subscription plans would have to be weighted so heavily to the company that they don't make fiscal sense. Volume always helps but when you(Vudu) pay say $1.50 to the studio / rental there isn't room for a subscription plan option.

Bottom line something like this has to start at the studio's. There is a reason Netflix online only has crap available. If Netflix can't offer good movies with their buying power, Vudu isn't going to have any better luck.

[Chopper]

Re: VUDU SUBSCRIPTION PLAN

The fact that no company has instituted a subscription plan when it is an obvious business model tells me its not doable.

Thats not true.

The reason there hasnt been one is because its such a new frontier.

I mean who are we really talking about? Vudu, AppleTV, and now Netflix.

Its just a matter of time.

Cable & Sat TV are not sitting on their asses. Neither are upcoming competitors. More and more companies will be offering Vudu type services, and in my eyes, the first one who can offer such a plan at an attractive price wins.

Look at FyreTV. Sure its porn... but the $10 all you can eat model work. Or at least they assume it will work.

[Chopper]

Re: VUDU SUBSCRIPTION PLAN

Your model assumes Vudu would force everyone into a plan. P

No, that wasnt my intention.

Ok, so change the model plan to 50% of Vudu owners... whatever.

They (Vudu) have to find a sweet spot to where the offer is attractive, and they make money. Its that simple.

PS - These partial plans would do nothing but confuse the public, and muddy the waters. If this were to work, it would need to be ONE PRICE - ALL YOU CAN WATCH.

[NA9D]

Re: VUDU SUBSCRIPTION PLAN

PS - These partial plans would do nothing but confuse the public, and muddy the waters. If this were to work, it would need to be ONE PRICE - ALL YOU CAN WATCH.

See - that's the problem. You really can't have that. Look back in this thread on the number of movies a person could theoretically watch via an instant on demand service like Vudu vs. a wait for it to arrive in the mail plan like Netflix.

Given that Vudu has to pay a fee to the studios for each rental, it could easily get in a money losing situation if the subscription is priced too low. Price it too high and people won't use it.

Let's assume that Vudu has to pay 50% of a rental fee to the studios. I don't know if this is anywhere near the amount but it makes the math easy. Let's say we have a $20 subscription fee per month.

Right now, a user spending $20 per month would end up watching about 5 movies assuming a $3.99 rental price. Assuming Vudu sends 50% to the studios, this means they make $10 a month from those rentals.

Now, if they have an unlimited subscription, once you go above 5 movies, Vudu starts making less money. At 10 movies, they are now breaking even. Beyond 10 and they start losing money.

I don't think you'd be able to have a monthly subscription for more than $20. People would probably want it less than that, but as you see, it would be very easy for Vudu to begin losing money.

This is why I suggested a quantity discount. It tends to offer the same sort of thing - you subscribe and you get say 7 movies for $20 instead of 5. Go beyond that and you pay but maybe at a reduced rate.

Obviously, my example is dependent on how much money Vudu has to pay the studios. I would not be surprised if it is more than 50% of the rental fee. Netflix can do what the do because there is a real theoretical limit on how many movies you can really send back and forth in the mail. Additionally, the licensing and fee structure for physical media is very different from digital media.

[HeadHodge]

Re: VUDU SUBSCRIPTION PLAN

Netflix can do what the do because there is a real theoretical limit on how many movies you can really send back and forth in the mail.

Not to mention that Netflix has different rates for the quantity of DVD's you can rent at one time.

Also they only buy X number of DVD's to rent out. So a big complaint by customers (including me) is that even though a title was available to rent, the popular new releases will always say either "Short Wait to Ship" or "Long Wait to Ship". It can sometimes take weeks before you can actually get a copy of the title you really want.

That's actually a more attractive feature of VUDU for me than VUDU's "instant viewing" feature. It's the fact that movies made available by VUDU, never run out of stock and are always available to rent when you want them.

[Rusdude]

Re: VUDU SUBSCRIPTION PLAN

I don't think having unlimited rentals is doable (unless it's only Netflix streamin-type). I agree with NA9D that volume discount is a more realistic approach and on the previous page I argue that Vudu could fine-tune a couple of packages depending on type of material a person watches (New Releases vs Catalog), quality (SD vs HD), and quantity (casual vs junkie).

[aaronwt]

Re: VUDU SUBSCRIPTION PLAN

In 1999 Netflix forced everyone on their subscription plans. I was one of the last holdouts and they forced me to get it in October 1999. Prior to that I was perfectly happy paying Netflix for each individual title I rented. It ended up being a good deal since I was renting alot of DVDs at the time. But if you aren't watching much then the subscription plan isn't a good deal. Which is where I'm at right now with VUDU and my rentals. I'm on the 2 out a month plan with Blockbuster, and I haven't rented much on VUDU lately. I've been spending time watching the TV shows. But since that is winding down, my rental should go up during the Summer. A large percentage of my movie watching is done during the Summer since I'm not watching as many TV shows.

[Chopper]

Re: VUDU SUBSCRIPTION PLAN

That example given for movies you COULD watch in a month on such a plan has no bearing on anything. Nobody is going to sit and watch that many movies for one. No one. Secondly, you guys are not taking into account the shipping/postage/packaging fees Netflix has to pay out. Millions.

What WOULD happen is, people would more often than not spend MORE per month on their Vudu service per month than they would renting a title here and there... which is typical for all flat rate plans.

And you guys can debate this all you want... but it will be coming, from not one, but most if not all VOD suppliers. There will have to be red tape to cut through, and legalities to work out, but it is coming.

This whole VOD thing is in its very infancy. It may be cable that strikes first... who knows. I already have OnDemand with Time Warner Cable that allows me to watch 100's of movies a month on demand for the price of $10-$15 a month. The interface sucks, but you can do it.