People will pay between $7 and $9 to rent HD movies-on-demand that come out the same day as DVDs, according to consulting firm Oliver Wyman. Right now, movies generally hit DVD first before releasing on-demand. Changing that formula would lead consumers to pay for three more movies a year, the firm said, adding $5 billion to the $50 billion spent on movies annually in the U.S.
Even a $7 rental seems too pricey to me, unless you're talking about some jaw-droppingly amazing movie that absolutely must be watched in high-definition. Despite its slightly outrageous numbers, the report touches on a fact that movie studios have clued into for a while now: video-on-demand is smoking hot, and doesn't deserve its second-tier status.
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