Lets DISCUSS: Distribution Models for Games/Movies on PS4/XB1

[MoHasanie]

Intrinsic said:

MoHasanie said:

I don't know...
25 cents per ad for each movie is a lot! That means, advertisers will pay $20 million dollars to reach 80 million people. That's way too much. The Superbowl which has the most expensive ads slots every year, is watched by 110 million people and charges $3.5 million for a 30sec advert. TV advertising is just much better value compared to the prices you mentioned. Plus this is a new concept, so movie studios will have to convince advetisers about this. So in the beginning ad rates will be very low. Probably less than 1 cent per ad. 

Not really.... it wouldn't work that way.

Advertisers will not be paying for each ad on a per user bases. The will be paying for general ad slots. Meaning, an advertiser will  pay $2M for 2 thousand ad slots. But any one of those 2 thousand ad slots could be shown to as much as 30M people. 

The system balances out cause thousands of advertisers are paying $500k to like $2M every year for ad slots. Sony/ms collects all that money and passes it onto the content provider at the end of the year.

So basically, take the matrix movie by warner bros. There are 4 ad slots in each movie. each slot is worth 25c to the content provider (warner bros). You paying for an ad just means that you apy for like $1M for say 1000 slots. each individual slot can be seen by as much as 20M individual users depending on who is watching what and when when. If somehow 10M people watch the matrix movie, then each viewing has generated $1 in ad revenue from different ads. 

Ah right. But then with this system, there is no way a movie can generate $50-$80 million in revenue.