HD video-on-demand can push another $5 billion

A study by Oliver Wyman shows how the industry can make us, the consumers, even poorer. The average consumer said to be willing to spend $7 to $9 for a high-definition VOD (video-on-demand) movie. While the current price for a downloaded standard-definition movie is about $4.

The survey also showed the problems with the current on-demand format. Digital rights management makes it hard for consumers to transfer movies between different systems and makes the downloads very limited. If people would really own the movie, they would be willing to pay $5 more for a download. This means owning a digital copy in an ‘online storage locker’ and being able to transfer the movie between different devices.