The average cost of a pay-per-view movie should dip below $4 for the first time next year, according to Request Television, one of the nation’s largest PPV operators.
In its 1995 Year in Review Report, Request said the 1996 average cost for a movie on pay-per-view should be $3.99. This year, the rate was $4.10. The rate has been steadily declining since 1985, when the rate was $4.79.
With direct broadcast satellite services such as DirecTV offering pay-per-view movies for as low as $3, cable operators will continue to face pressure to lower their rates.
The number of addressable cable systems with pay-per-view could increase by as much as 14%, to 30.2 million subscribers. The average number of PPV channels offered by cable operators is also expected to grow from 4.5 channels to 5.2.
Boxing continues to dominate the industry as the biggest revenue-getter among events. According to Request, 56% of total pay-per-view revenue came from boxing, with wrestling adding another 34%.