Consumers and film industry executives are discussing a potential solution to rising costs: more expensive films and television shows.
The issue is complicated by the fact that many television and film productions, including those that have been broadcast or released on DVD or Blu-ray, are not produced for the digital age and do not require a physical box.
That has prompted many film and TV companies to introduce digital products that are more expensive than the box.
This year, a number of big-name movie and TV producers announced plans to bring digital features to the home, but many are still waiting for their products to arrive.
For example, Netflix announced in January that it will launch a new streaming service, dubbed Prime Video, in March, and Amazon announced its own Prime Video service in May.
Some TV shows also are still in development.
A digital TV package that has been a staple of film and cable television in the past, it may be time to move on from the boxes.
“I think the big concern that’s out there is that people aren’t being prepared for the fact the box will be less affordable,” said James Bovard, senior vice president of product management for the Motion Picture Association of America.
Bovard said some companies are also thinking about moving toward a subscription model, which would require the use of an online service and a monthly subscription to view the content.
He added that Netflix and Amazon are both experimenting with subscription models.
The biggest difference between subscription and subscription-based TV packages, Bovarides said, is that they are not always bundled with a box.
He said that if the subscription option is offered for both the home and on-demand streaming, the cost of the subscription could go up, potentially leading to a greater financial commitment.
Bosse said he’s not yet convinced that digital streaming is a good way to go, but he said he believes it’s possible.
“I think a subscription would be better than no subscription at all,” he said.
The current streaming model is more expensive for most people, Bosse said, but the costs are often passed along to the consumer.
“People will buy more than they would pay for the same amount of content if they had a subscription,” he added.
Netflix and Amazon declined to comment on their plans to offer subscription-only offerings.
Brosse said that he hopes the next version of Netflix will offer more affordable streaming options, including its “unlimited” tier that lets people watch 10 hours of content per month.
“We’re looking forward to being able to offer that as a subscription option,” he continued.
The Netflix-Amazon deal is not the first time Netflix has been accused of not delivering the best value for money.
Earlier this year, the streaming giant paid a $1 billion settlement to the federal government over allegations that it failed to disclose the price of its streaming service to customers.
It also agreed to a $20 million settlement to settle a lawsuit by the American Civil Liberties Union.