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Web 3.0 & Online Movies (Part 3)

Posted on Thursday, Sep 6th 2007

Business Model

Online Movie sites earn money mostly from advertisements, subscriptions and charges for movie rentals and download. Movie download revenues are forecasted to be $60 million in 2007, up from 133.4% in 2006. Movie download revenues are forecasted to cross $100 million in 2008.

The online advertising industry is fast realizing the potential of the online movie industry and analysts are expecting a surge in advertisements on the various movie sites. A large chunk of this advertising dollar is expected from the various Hollywood studios that are forecasted to increase their online spending from $225 million in 2006 to $298 million 2007 and over $450 million in 2009.

According to eMarketer, US consumer spending on digital music, movies and television will touch $7.8 billion in 2010, up from $1.3 billion in 2005. Nielsen//NetRatings forecasts Walt Disney Corporation, Viacom, General Electric, Time Warner, etc. to be the top advertisers for online movie sites in the current year.

Rentals for Netflix start at $4.99 for and goes up to $23.99. CinemaNow provides online movie downloads and the rates vary from $3.99 to $9.99. The subscription rate for Platinum Club of CinemaNow is $29.95 per month or $99.95 for a year. At Blockbuster, the popular online DVD rental plan starts from $4.99 and goes up to $24.99. iTunes provides movie downloads for $9.99 to $14.99.

SeventyMM is an upcoming movie rental service in India and it offers about 10,000 titles to residents living in Delhi and Bangalore. The subscription rates starts from $5 per month.

(To Be Continued)

[Part 1]
[Part 2]

This segment is part 3 in the series : Web 3.0 & Online Movies
1 2 3 4 5

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[…] Original post by SramanaMitra […]

» Web 3.0 & Online Movies (Part 3) Thursday, September 6, 2007 at 8:29 AM PT

entertainment on demand is the way of the future. I would not be surprised if a custom tv channel is launched where you can only subscribe to the programs that you like watching (whatever the network it is telecast on).

Thiru Friday, September 7, 2007 at 5:10 AM PT