Mobile media and entertainment company Versaly Entertainment has released comparative results of its sales of video downloads for the first half of 2009 in the US. Versalys video-on-demand clips are distributed through its Vmbc.tv mobile video syndication network. Versaly says the results clearly show subscription downloads outperforming pay-as-you-go downloads.
Of all the mobile video storefronts in the Vmbc.tv syndication network, those offering unlimited downloads for a fixed monthly subscription fee are downloading about 25 times more video clips, compared to those offering individual pay-per-download models. In addition, overall revenue from unlimited video download subscriptions are outperforming individually purchased downloads by a factor of almost 20. The price of a monthly subscription is somewhere between 3 – 5 times that of a single download. The results, Versaly says, clearly demonstrate that subscription plans add tremendous value to next-generation mobile video consumption and are strong growth drivers.
It appears that many mobile video consumers who sign up for fixed monthly fee subscriptions did not download 3 – 5 videos in a month and would have paid less for their monthly consumption if they had simply purchased their video on an a-la-carte basis. This may be a single monthly anomaly, but Versaly says that another explanation is the financial security factor with the consumer not thinking about the cost of each video view and knowing that their wireless bill will be the same every month, regardless of their consumption. Vmbc.tv has seen overall viewership increase and the company believes that as the market matures, consumers will continue to increase their video consumption and the cost-effectiveness of the subscription model will be realized.
Overall, the Vmbc.tv mobile video syndication network, including video downloads and streaming video-on-demand programming, has seen an increase of about 60% in views in Q2 09 over Q1 09. The data was aggregated from Vmbc.tvs 20+ video distribution partners.
I am pleased at Vmbc.tvs growth over the past two years, and continue to be optimistic in the growth of both streaming video and downloadable video products for the US market, says Versaly President and CEO, Matthew Feldman. They both have a long-term place in the market.