Leading consumer research firm Parks Associates and entertainment technology think tank Entertainment Technology Center (ETC@USC) released a new white paper detailing steps to achieve profitable distribution of mobile content on mobile platforms and devices. In How Hollywood Can Out-Apple Apple, Parks Associates and ETC@USC suggest that content owners should offer more free content on mobile devices in order to aggressively promote movies and programming on traditional media. By offering free content, this will prime the pump for future premium offerings.
Parks Associates notes that less than 10% of Internet users are willing to purchase a digital movie download at current price points. The new white paper exhorts Hollywood to use Apple’s own tactics of offering bargain content in order to sell higher margin products for its own benefit – in this case, to drive consumers to new theatrical releases, TV programming, and eventually made-for-mobile programming, or “mobisodes.”
“Many content owners have tried re-purposing TV and movie content on mobile and have largely been disappointed by the revenues on those platforms,” said David Wertheimer, Executive Director of the ETC@USC. “While we believe wholeheartedly in “Anytime/Anwhere” availability of content, we also know that these devices, when content is created specifically for them, can create opportunities for marketing and selling content elsewhere, especially now, while consumer habits are just taking shape.”
“Hollywood shouldn’t let Apple make all the money, especially since they are the ones making the movies,” said John Barrett, director of research at Parks Associates. “Judicious use of free mobile content can help drive ticket and DVD sales.”
David Wertheimer, Executive Director of the ETC@USC, and John Barrett, Director of Research for Parks Associates, have both studied consumer behaviors and attitudes toward digital media. The white paper, an unprecedented collaboration between the two research organizations, is available for download at http://www.etcenter.org/publications and http://www.parksassociates.com/hollywood.
About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.
The company’s expertise includes new media, digital entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, consumer electronics, and home control systems and security.
Each year, Parks Associates co-hosts executive thought leadership conferences CONNECTIONS™ and CONNECTIONS™ Europe in partnership with the Consumer Electronics Association (CEA®). In addition, Parks Associates produces the online publication Industry Insights in conjunction with the CONNECTIONS™ Conference series.
About the Entertainment Technology Center at USC
The Entertainment Technology Center @ USC, founded in 1993 with the help of George Lucas, is a non-profit organization within USC’s School of Cinematic Arts. The ETC brings together the top entertainment, technology and consumer electronic companies to evaluate what consumers really want, which is then translated to the companies that make technology products. The ETC strives to show how technology impacts the next generation consumer, which will improve the consumer experience and will uncover new revenue streams for entertainment-related products. Current ETC sponsor participants include; Disney, Sony Pictures Entertainment, Twentieth Century Fox, NBC-Universal, Viacom/Paramount, Warner Bros., along with Cisco, Deluxe Entertainment Services Group, Inc., Lucasfilm Ltd, and Thomson.
