A market of tiered pricing, in which people paid less to see a movie on a cell phone in a theater, would result in greater consumption in developing markets where people depend more on their mobile devices for entertainment, the DreamWorks Animation SKG CEO said today the founding conference of the Forum on digital media to Los Angeles.
"People will pay per square inch," Katzenberg said, according to a Bloomberg account. "When a portable version is 75 cents, you get 350 million people in India to pay." This new pricing model could help increase sales of video distribution on the international market, where sales revenue dwarfs the United States and Canada by a margin of 2-to-1. at the box office in the United States and Canada totaled $ 10.2 billion in 2011, while international sales contributed $ 22.4 billion, according to the Motion Picture Association of America (PDF). MPAA recognizes the importance of the international market, where the percentage of industry turnover has increased steadily over the past four years.
The studios are turning to new sources of revenue, even at the cost of alienating traditional money makers. Katzenberg of DreamWorks signed a license agreement in 2011 to provide special programs and movies to Netflix, replacing a less lucrative deal with HBO. The agreement, which is estimated at $ 30 million per film, was presented as the first time a studio has chosen Web streaming over pay television.
