Hoping to drive usage of its video-on-demand (VOD) feature, Comcast Corp. (CMCSA) has sent customers coupons for pay movies as part a mini-magazine is distributes periodically to promote use of the system.
Comcast VoD provides access to free and pay TV and movies, among other programming. The coupons, one for this month and one for next, are redeemable via mail with your monthly bill, for free 99-cent movies.
That enables VoD users to pay just 99 cents for a movie priced up to $4.99. In the Greater Boston market, that covers the vast majority of titles in the cableco’s pay movie lineup. Movies at $4.99 typically comprise movies that have recently left theaters.
Further, with some movie houses releasing movies to DVD and pay VoD the same day, consumers can pay 99 cents for a movie that might cost $15, and usually more, to buy and own on DVD.
Such a value proposition should draw consumer awareness to the sizable price difference between pay VoD and DVD purchase, and thus drive additional use of the capability once the coupons have been redeemed.
In a badly battered economy and with much of the U.S. spending more time indoors because of cold temperatures, consumers are looking for way to maintain their content consumption and reduce prices.
Cinema operators fear consumers will stay away from the expense of viewing first-run movies in theaters, in part because of inconvenience and potential extra expenses, and have released movies afterwards on DVD the same day they debut on pay VoD.
Comcast’s efforts to drive VoD usage represent numerous ways operators can monetize the system whether they lease them from package providers or buy and operate the content libraries themselves.
The promotional VoD magazine also explains and pushes use of premium on demand, which enables customers that subscribe to movie channels such as HBO, to watch the channel’s show and movies whenever they choose, free-of –charge.
The Comcast mini-magazine also explains in simple detail how to use the VoD system for those who haven’t, and promotes premium on demand movies with photos and description of the series that are available on HBO, Starz, Showtime and more.
The promotional piece is in stark contrast to direct mailings from telcos and cablecos that are focused on service and bundle price promotions, and little else.
It’s uncertain if the movie coupons will become a Comcast VoD staple or whether they are a seasonal promotion.
