Buying a copy of a movie or TV show has been in decline in the US for more than a decade. However, these four market and technology changes could signal that video ownership is set for a resurgence.
Disc and digital video sales in decline
Since Netflix started streaming in 2007, igniting the huge SVOD expansion, buying movies and TV shows has declined. For example, in 2013, revenue from disc and digital sales in the US amounted to $9 billion, while spending on SVOD subscriptions was $3.2 billion. In 2022, the revenue derived from video purchases was $4.2 billion, while SVOD subscription spending has grown to almost $30 billion.
But market and technology conditions are changing, which could favor a resurgence in video ownership. Here are four reasons why.
The Blu-ray experience can now be replicated online
Movie and show fans have always loved the bonus features available on Blu-ray and DVD discs. Of course, buying the movie in digital form is no problem, and there are plenty of online movie stories from which to buy it. But it has not been easy to replicate the disc experience online until now.
Blockchain video network Eluvio enables providers like Warner Bros. to recreate and extend the disc experience online. For example, it recently worked with Warner Bros. to deliver the Superman Web 3.0 Experience in two versions:
- The Standard edition includes the Superman: The Movie Theatrical version, previously released special features, and an image gallery with stills and behind-the-scenes pictures for $30.
- The Premium edition includes everything in the standard edition and adds directors and extended TV cuts of the movie and a more extensive image gallery. The edition comes in three separately available variations – Truth, Justice, and Hope – with a rendering of Christopher Reeves as Superman by one of three DC artists. It costs $100.
Both editions include access to the video in 4K HDR resolution via a dynamic menu based on iconic locations from the film.
Movie owners have the right to sell their copy
When somebody buys a DVD or Blu-ray disc, they can resell it or give it to someone. When someone buys a digital copy of the same title, they likely won’t be able to sell it, give it, or loan it to anyone else. For example, I own Valentine’s Day (goodness knows how I ended up with it.) It is in my Movies Anywhere locker, but there is no mechanism for me to sell it or give it away. Allowing those ownership rights is problematic because the technology could not guarantee that the original owner would be unable to watch the video after they had sold it. Web3 technology can make that guarantee.
When someone sells their copy of the Superman Web3 Experience, Eluvio uses the blockchain to ensure the rights to access it are irrevocably transferred to the purchaser. After the sale, the original owner can’t see or play any of the content, just as if they had sold their DVD copy.
The popularity of SVOD ad tiers
SVOD ad tiers have been a big bit with customers. According to data from Antenna, 25% of SVOD subscriptions are to an ad-supported tier. Unfortunately, the ad tiers are inflexible, forcing viewers to watch with ads all the time. I’m sure that sometimes ad-tier viewers would like to watch a favorite or newer movie or popular show without them, but to do so requires upgrading to an ad-free tier for at least a month.
A great way to guarantee ad-free viewing is to buy the title. Then, the title owner can watch as often as they like and never be bothered with ads.
SVOD subscribers can’t rely on their favorite titles remaining available
One of the things that SVOD users have come to rely on is that a favorite title is always available to watch whenever they like. Moreover, why own a movie or TV show when they are available in an SVOD library to which you subscribe? The large SVOD libraries are one of the biggest reasons consumers have swapped video ownership for SVOD library access. But SVOD users can no longer rely on a title’s availability.
SVOD providers have begun to remove titles from their libraries to save licensing and residual fees. Disney+ removed the original Sci-Fi movie Crater just two months after its service debut without warning subscribers, much to their annoyance. It has also removed shows like Willow and The World According to Jeff Goldblum. Hulu has also dropped shows, including Dollface and Maggie. WB Discovery has removed titles from its HBO Max (now Max) service, including Raised by Wolves and Westworld.
The message is clear for SVOD subscribers: they cannot rely on a title remaining in an SVOD library forever. The only way to do that is to buy it – if it is available!
