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After studying the performance of adult PPV networks in dozens of cable systems across the country, we havefound several
common characteristics in systems with higher-than-average buy rates:
Pay-Per-View (90 min blocks) vs. Six hour block: Overall, we have found that systems that sell adult programming in a six hour block post a
36% higher buy rate and 58% higher revenue on a monthly basis. The higher revenue is due to a combination of higher buy rates and a higher retail
rate for the 6-hour block.
Pay-Per Title (90 min blocks) - Selling adult content in 90 min blocks is a prohibitive way to sell adult programming for several reasons:
- Selling per title creates a situation in which there are sixteen (16) hours during the day when customers can order a movie and NOT get instant
gratification. For example, if a movie starts at 10:00 customers can begin ordering at 9:00 and not see anything for up to one hour. Adult is an impulse
buy and many customers are not willing to wait for up to an hour to see adult programming, especially late at night.
- Operators seldom get repeat buys from the same household in a 6-hour period.
Six hour Block: Selling adult content in six-hour blocks is by far the most consumer friendly way to maximize revenue in your adult category. A 6-hour
block with start times of 7p - 1a, 1a - 7a, 7a - 1p, 1p - 7p are the most effective.
- Selling adult content in six-hour blocks eliminates a multitude of start times and maximizes the ability for customers to order and view immediately.
This is very important during late night hours when customers are making an impulse buy and may not want to wait up to an hour to see a movie. There are only
4 hours during the day when consumers can order and not get instant gratification (one hour before each block).
- Consumers get more for their money with a six-hour block and are allowed to start viewing immediately any time during the block until one hour before
the end of the last movie in the block.
- Operators seldom get repeat buys from the same household in a six-hour period, so there is no lost revenue by offering a six-hour block.
- Most systems charge at least $1.00 more for a six-hour block, however, each market has a different price tolerance
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