A new study has found that the optimum ‘ticket’ price to generate the maximum revenue for an online performance is £10 per session in the UK.
Vivid Interface, in collaboration with fellow market research provider Panelbase, explored five different price points with 1,019 respondents who were asked in June whether they would pay £20, £15, £10, £7.50 or £5 to ‘watch a play, an opera, ballet performance or live band gig’.
Whilst unsurprisingly the research found that largest proportion (39%) of respondents would want to pay the cheapest fee (£5), in turn generating the highest audience, 21% of those polled said that they would pay £7.50 or £10 per session. There was then a big drop-off to 7% who would be willing to pay £15 and 6% who would be willing to pay £20.
Overall, when extrapolated into a potential audience, the study found that the optimum revenue would be generated by the £10 fee, followed by the £5 price, the £7.50 option, the £20 fee and then the £15 price.
However, there were also differences between varying age groups.
The optimum price points for revenue and viewership for 18 to 25-year-olds and 36 to 54-year-olds were £10 and £5 per session, respectively, but the £5 price point provided the optimum income and viewership for the 26 to 35 and 55-plus age demographics.
With women, the £5 fee generated the best results in terms of viewing figures and revenue while with men the optimum price points for income and audience were £10 and £5, respectively.
The study also found that the optimum ‘virtual’ ticket prices for families with children under the age of 16 were £10 for maximising revenue and £5 for maximising viewing figures, although overall such families are prepared to pay more for their online engagement than independent adults.
Interestingly, the research also found that 25% of respondents would continue to watch new film releases online after cinemas have fully reopened, with 16% even preferring to do so rather than attend a movie theatre.
For live music performances, stand-up comedy shows and a play or musical, 21%, 18% and 12% expect to continue watching online when life has returned to relative normality, with more than half of those respondents saying they would prefer to watch the performances online rather than in person.
The report can be accessed here.