In Part 1 of this post, I referenced comments from users of the Kaleidescape Owners Forum who answered my question, “How much would you be willing to pay for Day and Date?” I expected these luxury system owners to have no problem with paying a substantial amount for the ability to see a movie at home the day it opens in theaters. But even among this group, not a single person was willing to pay even the minimum amount—$500—Prima Cinema charged and Red Carpet Home Cinema expects to charge for day & date viewing.
Casting the net to a wider audience, I ran a poll on the Sound & Vision website, which caters to enthusiasts of all income levels, where I again asked what they would be willing to pay for day & date. After nearly 350 responses, it’s clear that the
vast majority of people aren’t willing to pay a very high premium at all.
In fact, the enthusiast responses from Sound & Vision far more support the likely pricing for movies available at home a week or two after they premiere in theaters than the $500 low end of the current day & date pricing schemes (see Table 1).
As you can see, out of 348 answers, only 43 people (roughly 12.6%) were willing to pay $100 or more. But when you go down to the $50 to $99 range, the group jumps to over 32%. This is a pretty large crowd, and a price that might be realistic three to four weeks after a movie hits the cinema. When you get to $25 to $49, more than half the responders would bite.
Is this an unrealistic price? Perhaps. But consider this: The current state of the art for home video viewing is 4K Ultra HD Blu-ray discs, most of which sell for around $20 to $35. Since this is what you now pay to own a movie and watch it as many times as you’d like, would it be so unreasonable that the movie studios would let you watch it once for $49 at some point later in the movie’s theatrical window? Maybe not . . .
A common theme among the Kaleidescape owners was that they want this premium rental to also come with the right to own/download the movie when it goes into mass release on home video. When asked if they’d be willing to pay more for this right, the responders were almost split in thirds (see Table 2).
Almost 39% said they would actually pay more. So, maybe at $125 to $150, you would get to watch the movie once while it’s still in the theater and would then be able to download it as soon as it’s in wide release. That seems like a pretty palatable choice that also wouldn’t erode the studios’ profits from traditional home releases.
Finally, I asked how often they would actually rent a movie if it were priced at just $50 (see Table 3). I was surprised to find that most enthusiast owners wouldn’t do it very often.
Slightly more than 5% would do it once a week, with about half saying they would rent a $50 movie once or more per month. Shockingly, more than 45% said they’d only do it a few times per year. And remember, these are audio/video enthusiasts responding to a hypothetical day & date price of just $50.
As for the necessary hardware, with Prima at $35,000, Red Carpet at $15,00, and Kaleidescape starting at $4,500, the systems required to play these movies aren’t cheap, which was another huge barrier for entry for many.
When asked how much they would pay for the hardware needed for day & date playback (see Table 4), more than 50% said they would only pay less than $500. Again, that seems highly unrealistic, especially when you consider the security measures that need to be employed, but it does bode well for Xcinex, which says its Venue will come to market for less than $30.
Also, these prices address the per-viewing model, which means it’s the same cost whether there are 1 or 50 people watching. The other option is the same per-viewer or per-ticket model theaters use, which is how Xcinex plans to operate. Other than the potential issues and privacy concerns with a sensor monitoring and counting viewers, it again seems difficult to believe Xcinex could come to market and offer day & date viewing at literally fractions of what the other companies are charging. But the company says it’s firmly committed to launching by the end of this year, and that it will have content and deals in place, so time will tell.
What impact will day & date have on your movie watching habits? And how much would you be willing to pay for the privilege?
Probably the most experienced writer on custom installation in the industry, John Sciacca is
co-owner of Custom Theater & Audio in Murrells Inlet, South Carolina, & is known for his writing
for such publications as Residential Systems and Sound & Vision. Follow him on Twitter at
@SciaccaTweets and at johnsciacca.com.