Video: How to Price and Position Your SVOD Offering
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Read the complete transcript of this video:
Jamison Tilsner: When we're helping people launch their OTT services in the sort of mid- to longterm, they don't have big analytics-based marketing departments and research departments. So they just have no idea what to price things at. We’ve built up some quite nice BI tools. And what we've seen from an aggregate is that actually, there isn't quite the same level of price sensitivity between $5 and $10 as was shown on your graph, which was a huge drop off of like 80%. We actually tend to advice people who might be thinking, "Look you know, Netflix is $12. We need to be at less than $5, because we're a niche service with way less content."
We would actually say of course you have to be below Netflix, because they kind of define what is an acceptable price point for a service. It's a lot easier to drop the price than it is to put the price up. We would encourage people to just be bold and start at $8 or something, and see what happens. And then you can always run promotions. You can always drop the price, and experiment. But we have not seen that level of price sensitivity at the $5-$8 range. The other thing is, I totally endorse the TV as the preferred platform when we're talking premium content, obviously. There is a whole sector, a handful of which you've addressed there, who really do contemplate the mobile and social platforms as where people will consume them. And so, the Rooster Teeths of this world, and this is why vertical video became a thing, because there is no doubt that there is vast consumption of a different form of video on those platforms.
And so yes, I think in the context of the longform premium shows that you surveyed here, no surprise at all. But of course, there is an entire other industry which is growing rapidly, Refinery 29 was on your list. Rooster Teeth, the Dodo, the list goes on and on for whom the TV wouldn't even register as there would be no consumption on the TV. I think it's important to remember that there is an entire different world that contemplates those sort of platforms.
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