The Calculation of the Currency of Hedonism.

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This is the third article in this series entitled: The
Economics of Video Entertainment

Part 1 Here

Part 2 Here

 

For the last couple of days I’ve been leading up to talking
about the individual value proposition as to why people purchase, watch, read
or listen to certain types of content.

 

Hedonic pricing components of entertainment are based on the
public’s willingness to pay for perceived differences in entertainment
offerings.

 

Chris and I have been batting the ball backwards and forwards
over the variables that cause the purse or wallet to be opened and the transaction
to take place.

 

We have concluded that the age old sin of pride in the
context of gossip and water cooler conversations is the major culprit.

 

Being able to tell your friends that you attended a viewing
of Avatar at the IMAX at Darling Harbour – and that the experience, as one
Avatar attendee relayed to me: “Blew me away with the surround sound, the
completely immersive nature of the film, I felt as if I was there, a part of
the whole adventure. It was great!”
(We’ll call this Experience 1 – “E1”) –
is a cool thing to do. Especially so, if you were one of the first that
recognised the “greatness” of the entertainment offering.

 

Experience 2 (“E2”) – Conversely : “I have been to some
bad cinemas showing brilliant films, yet the lumpy and ungiving seating has not
only ruined my enjoyment of the cinema experience, it has soured it for me so
that I no longer attend the smaller theatres that show the limited release
films.”

 

Here we have the two extremes of the Cinema experience.

E1 enjoyed the environment so much that he was gushing to
tell me how great it was.

E2 put me off permanently from ever wanting to visit a
certain Cinema chain.

 

Let’s break down the components:

 

Peer Review Outbound
– he enjoyed telling me about his experience

Peer Review
Inbound    – I was so impressed with his
enthusiasm, that I immediately went to
Rotten Tomatoes to read the Critics reviews where 82.4% said
it was great.

image 

 

The E1 experience also dealt with

 

Visual Quality

Audio Quality

 

Rotten tomatoes brought to my attention the Director of the
movie so let’s add:

 

Direction, Plot and Editing to our list.

 

Obviously the quality of the stars would be important so
lets add:

 Actors.

 

Now what would happen if we added one further ingredient?

Possibly the most important one.

 

What’s happening to Avatar on the P2P Networks?

 

At the Pirate Bay,
some kind anonymous person is providing the current Top 100 of all downloads (which used
in the right manner, allows anyone that can mine data to become a Nielsen’s
wannabe.)

                                                                                                                                               

RANK

NAME 

 DATA

Seeders

Leechers

10

Avatar (2009) PROPER TS XviD-MAX

Uploaded 12-20 2009,
Size 1.36 GiB,

15882

5695

27

Avatar (2009) Spanish TS HQ

Uploaded
12-21 2009, Size 1.64 GiB,

4109

6127

37

Avatar TS XviD-IMAGiNE(No Rars)

Uploaded
12-19 2009, Size 1.53 GiB,

6342

2320

43

Avatar.2009.iTALIAN.MD.INTERNAL.DVDscr.XViD-THEMA[S.o.M.]

Uploaded
01-16 
20:17, Size 
1.29 GiB

3763

4468

 

 

 

 

 

TOTALS

30096

18610

 

Which actually put it ahead of the most popular TV shows,
however with P2P interest waning (decreasing Leecher numbers).

 

1

Heroes S04E18 HDTV
XviD-LOL [eztv]

Uploaded Today 04:42, Size 349.94 MiB

28148

31306

2

House
S06E12 Moving the Chains HDTV XviD-FQM [eztv]

Uploaded, Today 03:27Size
350.04 MiB

24325

22834

Data is as at 23:30
hours, Feb2, 2010 EST AU.

 

Therefore TODAY – Avatar, the movie (albeit in three
different languages) is the number one downloaded file in the world.

 

If we gave all of these items based on personal Hedonic
preferences and here is the difficult part. What appeals to “moi” may not necessarily
appeal to you and vice versa…. So obviously we have to nominate the following
list as:

 

 

Arbitrary Hedonic Values

1

Currency of
Content

<1 Mnth =+35%

1

Familiarity of
Content

+3 for current
affairs memes, themes and Temes.

1

Value of Content

+1 for each minute
of content

5

Action

+5 for each
explosion/car chase/

2

Music

+2 for appropriate
music scoring per scene.

5

P2P Downloads

+5 for each
download

#

Actors

+10 for each
famous actor

8

Director

+8 for “Like
the Directors Films”

5

Patriotism

+2 for program
reflects my patriotic values

5

Oscar Awards etc

+5 for program has
been nominated for an award (x # of awards)

1

Critiques

+1 for every Critic
posting Positive or Negative.

5

Technology

+25 for every
unique Technology aspect. (3D/Imax).

3

Social Networking

+3 for every
mention on Facebook

1

TV Advertising

+1 for every time
I noticed a TV advertisement

3

Newspaper
Advertising

+3 for every time
I noticed a Newspaper Advert

5

Scenery

+5 for artistic
content – e.g.: Beautiful Scenery

5

Plot

+5 for Great plot

5

Editing

+5 for excellent
editing.

5

Peer Review
Inbound

+5 for every
person that has told me about it.

5

Peer Review
Outbound

+7 for every
person I talked to about the film.

5

Venue Quality

+5 for Great seats
and comfortable ambience

1

Visual Quality

+10 for IMAX, +8
for Cinema 2K +5 for HD +1 for 720 x 480

#

Audio Quality

+10 for Dolby
surround sound

 

So now I have my very own personal Hedonic scoring method value
for each piece of content viewed or under consideration for viewing.

 

The discerning consumer might then look-up his entertainment
budget to ascertain whether a $27.00 ticket price is affordable, however, if we
add “Peer Pressure” to the above mix, then we have obviously reached “Engagement
Point” and the contents of the wallet/purse are then utilized.

 

The days when consumers are driven exclusively by free to
air and print-press advertising are long past.

 

Word of Mouth has expanded to Peer to Peer networks
including the social networks. A thumbs up on Facebook or the Torrent/ED2K Networks
is an apparent guarantee of success at the Box Office.

 

The desire for non-cashed up young people to be able to be
in the first group of viewers that have seen a film is high. Peer pressure
demands conformance.

 

Short of building thousands of IMAX theatres throughout the
world, I don’t know how Hollywood
can satisfy the growing demand for the real experience of these modern
technologically advanced films.

 

Australians that download Avatar from the P2P networks pay
approximately $3.00 in bandwidth charges for the privilege of being under-awed
by the experience.

 

Down-loaders soon learn that the experiences of E1 are far
superior to their own….

“Well I saw it for free”.

Free low-res computer-fare might have been cool in 2004, but
now, it’s just so, ho-hum.

Free doesn’t have fresh popcorn smells.

Free doesnt include 3D

Free doesnt include a hugest screen.

(We blogged about
the ersatz “taste” here.)

 

Value of the P2P download as recommending tool = High

Value of the P2P download to the downloader is questionable.

 

If Hollywood
continues this innovative approach to movie making, I dare say their coffers
will keep filling.

 

3D heads up display glasses anyone?

Just maybe, instead of ignoring these new technologies, Hollywood
should bring them out first.

 

I see in the not too distant future, content companies with
technology R&D departments.

 

Sort of like…. Sony and of course with the reverse process, Apple..

 

Old Hungarian saying – if you can’t beat ‘em, join ‘em.

 

Tomorrow we are going to discuss the Value per minute.

 

Stay tuned.

 

References:



Transformers 2: The IMAX Experience

http://screenrant.com/transformers-2-imax-experience-kofi-14656/


 

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