In 2022, “A La Carte” VOD confirms its attractiveness
VOD À La Carte strengthened by the pandemic
The transactional VOD market, also known as A La Carte VOD, is expected to reach around €250 million in 2022, representing a growth of 15.1% compared to 2021 (and +3.6% compared to 2019, before the Covid-19 pandemic).
After being affected in 2021 by a shortage of new releases, the market held steady thanks to catalog titles, before rebounding in 2022 with the return of new content, whether released in theaters or directly on video.
Fluctuations in the supply of new products, resilience of the catalog
As the first window after theatrical release, the transactional VOD market stands out amid the proliferation of subscription offers (S-VOD) thanks to its ability to offer films as early as four months after their cinema release.
An essential window ensuring the proper exploitation of audiovisual works, A La Carte VOD has recorded a 19% growth compared to 2021 as of the end of October, according to estimates by AQOA.
An essential window ensuring the proper exploitation of audiovisual works, VOD À La Carte recorded a growth of 19% versus 2021 at the end of October, according to estimates from the AQOA firm.
The impact of the return of new releases, particularly major franchises like Spider-Man, Top Gun, and 007, was strongly felt in 2022. This was especially true for the Purchase (EST) format, which, after a slow start to the year, recorded a 14% growth by the end of October.
By generalizing an exclusivity window of one to two weeks for EST, studios adopted a commercial strategy to maximize revenue during a title’s initial period, before making it available for rental.
The Rental (VOD) format, whose resilience in 2021 relied on catalog titles, confirmed its appeal and recorded a 21% growth over the same period, driven by the return of new releases. By the end of October 2022, 50% of the rental market’s value came from new releases (less than six months old), compared to 31% for the same period in 2021.
As of the end of October, the A La Carte VOD market reached €197K, surpassing the physical market (DVD/Blu-Ray), which stood at €175K over the same period (Source: GFK). This record performance confirms the format’s appeal, offering viewers the most recent films in a flexible way: paying “à la carte” to watch the movie they want, in the format they want, without any commitment.
The Transformation of the Offering Around New User Habits
The 2020–2021 pandemic pushed video players, both A La Carte VOD and S-VOD, to experiment with new distribution models. “Direct to Video” releases for films originally intended for theaters became more frequent in the first half of 2021 while cinemas remained closed. The most notable example was the exclusive release of Justice League on A La Carte VOD services, which set a record with over 100,000 estimated downloads in its first week (Avcesar.com).
Other films were launched through S-VOD offerings, a strategy that continued even after theaters reopened. However, this approach—which reduces a title’s potential across other formats and windows—is now being reconsidered. On one hand, the visibility provided by theatrical releases (outside pandemic-related closures), and on the other hand, the wide and diverse selection offered by A La Carte VOD, are both essential for maximizing a film’s revenue.
Some players are adjusting their strategies by returning to a more classic and linear model aligned with the traditional media chronology.
For instance, Disney announced a strategic shift and a reduction in productions for Disney+ in 2023 (Jeuxvideo.com). Amazon, which acquired the MGM studio in March 2022, intends to continue investing in theatrical film production (Siecledigital.fr), while Warner Bros. Discovery has postponed the launch of its S-VOD service HBO Max in France (Numerama.com).
Towards a Global and Integrated Cinema-Video Ecosystem
The proliferation of S-VOD services and the emergence of questions around the profitability of these services are causing a review of economic models and a rebalancing of offers.
Some platforms in search of profitability have no other choice but to move towards an advertising-based model (Netflix) while others diversify and boost their offerings by integrating VOD À La Carte and pay TV into a global offer (MyCanal and Prime Video models).
In this context, VOD À La Carte takes its place and positions itself as the Premium format allowing levers of visibility and growth to be activated for the entire cinema-video ecosystem.
Cross-cutting strategies for film and video are naturally beginning to emerge. In the United States, an agreement signed between theater operator AMC and Universal Studios has reduced the time between the theatrical and video release windows to 17 days ( Francetvinfo.fr ). The goal is to ensure the prosperity of film distribution while satisfying VOD demand and thus maximize the performance of these two operating windows.
In France, where a legal framework defines the media chronology, optimization between formats is at the center of the debate. To the extent that the objective is to offer packages that meet consumer expectations and allow each film to maximize the revenue it generates, pay-per-view VOD is positioned as an essential cog in this virtuous ecosystem.