VividTV's Ken Boenish Comments on PPV/VOD Market

Oct 1, 2012 2:45 PM PST

LOS ANGELES — VividTV president Ken Boenish spoke with MultiChannel.com about the current state of adult pay-per-view and VOD and what can be done to pull the market from its downward trend.

“We hit the perfect storm in 2008 with the economic downturn," Boenish told the site. "There was downward pressure on consumer spending; the economy was heading into a real rough spot; operators were raising prices on adult products — in some cases it was $15 for an adult movie.

"And the online experience, through better data speeds, was becoming more and more satisfying, with companies releasing tube sites with free content.”

Boenish said that producing premium content and protecting it from the various tube sites and discounted websites that would make it available online for cheap or free was the first step to market recovery. The second is setting a reasonable price point.

“It comes down to product and price. If you don’t have the right product at the right price your audience is likely to go elsewhere just like any other entertainment platform offered,” he said. “The real key to success is having some kind of content at a less expensive price point, like single scenes anywhere from a $1.99 to $3.99; multi-scene compilations that are a half hour in length somewhere around $5.99 and full-length movies somewhere under $10. That coupled with a strong monthly subscription offering with a sweet spot around $15 to $20.”

Boenish believes that adult still has a strong future on TV platforms, citing the fact that cable and satellite providers still manage to sell overpriced content.

“The future looks like cable operators settling in on a handful of very big brands that are supported with content that is not overexposed and not available for free online, and that are very serious about creating a content experience that is a premium experience just like HBO or any other premium channel,” Boenish said. “I think, going forward, a combination of transactional and monthly subscription [fees] really makes a lot of sense.”

Boenish is the former President of New Frontier Media and a 22-year cable and satellite TV veteran. He was named VividTV President in August.  

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