"The pay-per-view market is perhaps the largest growing segment of the online entertainment industry," began the promo for this event. "Find out why some companies have flourished while others have not and learn the ins and outs of selling individual files online." For those seeking the means to maximize the income from their content, the seminar delivered as promised.
Moderated by CCBill's Laurie Biviano and featuring Stephen Bugbee of GigaCash, Randall Crockett of DRM Networks, Mike Hawk of Smashbucks, Mike Herman from AEBN, Christopher Levy of BuyDRM, and James Siebert from HotMovies, the panelists were once again situated comfortably in the Mission Palm's Palm Ballroom -- the setting for the earlier seminars held as part of this program.
"You have membership sites, and sites that sell individual files, and the catch words for those files are 'pay-per-view'," offered Crockett, providing a clear understanding of the content delivery mechanism under discussion.
"People are losing interest in recurring membership sites," Siebert began, discussing how consumer disappointment over the quality and value of a typical membership site has led to distrust that they'll receive what they were promised on the tour -- and paid for. "PPV is a way of rebuilding consumer trust. The more they learn about it, the more they love it," Siebert added.
"It's changing the way people use the content," Levy opined, as he commented that PPV allows a personalization to the content and the way in which it is delivered -- delivery mechanisms that Herman asserted AEBN is on top of; "we view ourselves as a company with foresight," he said, discussing AEBN's view on the convergence of technologies such as mobile, IPTV and the increasing availability of global bandwidth and high speed access.
Bugbee offered a working solution for pay site operators and others wanting to market PPV content by suggesting they put the offer on exit consoles and other means of reaching departing prospects. "A surfer who might not want to pay $20 for a membership that includes all of the content might pay $5 for a single clip," Bugbee said. The revenue from those single clip sales adds up quickly, as well, with many customers spending far more on them than the cost of a membership.
Regarding the size of the customer base, the demand from which is driving PPV sales, Siebert quoted recent statistics that put the number of broadband surfers at over 97 million. "Lowering the barrier and increasing usability increases sales," Levy said, discussing how PPV makes it easier than ever for these surfers to access the content they desire.
Ease of use and access to content is not the only benefit of PPV systems, however. The comprehensive nature of the content being offered also plays an important role. "As site owners, we want to offer users as much as we can," said Hawk. Offering highly diversified content libraries helps to keep customers satisfied and returning for more, a sentiment which Herman confirmed, "the user has no reason to go anywhere else," he said.
Offering content via pay-per-view networks was a hot topic, with the consensus being that working with an established company was the way to go. "Licensing your content out to one of these businesses is a no-brainer," said Levy. While some entrants to the market may feel the need to develop their own systems, having to re-invent the wheel can be much more expensive and time consuming than expected. "There's been a lot of time and money invested into making these programs work," Bugbee offered, suggesting that white-label versions of existing platforms could serve as an alternative solution for those seeking a customized package.
As for the type and source of content suitable for offering via PPV systems, Crockett suggested that you "don't leave any stone unturned," and as an example opined that cam sites should archive their live shows and sell the resulting videos on a pay-per-view basis. There was a warning, however, that rights are a major consideration, especially for those with purchased content who may not have "exploitable rights" allowing them to transfer their content rights to the PPV provider.
There was also a consensus opinion that content owners should be wary of exclusive licensing arrangements as these counteract the desired strategy of marketing content as widely as possible.
The role of digital rights management (DRM) in the pay-per-view process was also discussed, as was the challenges involved in running a PPV company, including the development time and expense, as well as unexpected issues like the immense amount of heat generated by encoding farms which require heavy duty air conditioning systems to protect the computers, and the large amount of storage space required, both virtually, as in hard disk capacity, and physically, as in room to store and archive backup copies of all programming.
In the end, Crockett summed up the promise (and predicament) of PPV, saying that "the quality of the experience is vital because you're competing with mainstream entertainment options." Bugbee also found inspiration from the mainstream, suggesting that operators look to the music industry for a clue as to the future of adult, but it was Hawk who made it simple: "Capture money in all ways -- give them what they want."
