You’ve decided that pay-per-view (PPV) live streaming is a good strategy for your organization, and that’s great—it means you have confidence in the value of your content and its ability to contribute to the bottom line. But pulling your PPV off successfully depends in large part on one thing: your price point.
How do you set event prices that maximize customer satisfaction and engagement, yet bring in enough money to make it all worthwhile? From experience I can tell you it’s not always easy, but it is absolutely possible.
4 Considerations For Accurately Pricing Your Pay-Per-View Live Stream
To set an appropriate price for your live stream content you need to consider the following:
1. Who is your target audience?
Will those watching your PPV primarily be locals (i.e. people who would attend in person but can’t for a specific reason), or will your event have national appeal? Your anticipated audience plays into the amount you can charge.
- If your event will attract mostly locals, your pricing should be equal to or cheaper than the actual event. You can’t reasonably charge more to watch a live stream than it costs to attend the event in person, or people simply won’t watch. Your PPV should be offered at somewhat of a discount to make it worthwhile for people to stay home vs. going. If your event is free, however, there will always be people who want to attend but can’t; in that case, a fair price—usually erring on the lower side—will attract viewers. Some college sports, regional events of all kinds, or small entertainment events featuring local performers are all examples of live stream events that have local appeal.
- If your event has national appeal you’ll want to price it as low as possible to encourage a greater number of viewers. Having a low price point has an added benefit: it helps avoid any potentially negative backlash on social media that naturally takes place if people think something is too expensive. Too-high pricing is also more likely to dissuade people from viewing any of your organization’s future live streaming events.
Do you know your other options for generating revenue besides pay-per-view? Download this free guide to learn more ways to maximize your monetization efforts.
2. What are your viewers willing to pay?
There will always be people who object to paying for content, and some audiences may be tougher than others. For instance, parents of collegiate athletes who are already paying tuition tend to be more resistant to paying for live-streamed sporting events. You won’t be able to please everyone, so the best strategy is charge what the majority of viewers would consider to be a reasonable price at the start. Remember, for many people your live stream is the only way they can get access to an event, so they will be willing to pay.
3. What is the value of your content?
Having said the above, people will be willing to pay if they see value in your content. Think about it this way: If you compare your production to one taking place in a multi-level theatre, is yours the one with low audio, where the camera sits in the balcony seat not zoomed in all the way? Or is it the one that switches between three cameras to get up close and personal with the action? In other words, if your production is really impressive, some viewers may appreciate watching a well-done live stream more than watching the event in person. It takes time to work your way up to this kind of high-quality production, but before you start charging, be sure your product will at least leave viewers satisfied.
4. What are your PPV live streaming goals?
Some organizations charge for their live streaming content to generate revenue; others do it to cover the costs of production and equipment. Many Stretch clients reinvest the money they earn back into their programs, buying new equipment little by little to increase both the quality and quantity of their productions. Over time, those small investments will make their live stream content even more valuable in the future.
With this in mind, consider what your own organization’s goal is for pay-per-view live streaming. If the revenue from PPV is intended to cover the costs of your production, you can set lower a lower price than if you’re looking to make enough to buy new equipment. But if you’re just starting out with monetization, it’s always a good idea to start with a lower price, see how things go, and work your way up to a more sophisticated broadcast.
Want some help finding your pricing sweet spot?
Pricing a pay-per-view live stream can be a challenge, which is why we work closely with all our clients to help determine fair prices and assess how their monetization strategy is progressing. We can also help you create monetization packages, which give your viewers the flexibility to watch as much or as little as they want—and maximize your revenue potential.
Are you ready to hit the ground running with the right live streaming partner? Schedule a free demo of our platform today! We’re also happy to answer any questions you have about pay-per-view live streaming—just drop us a line.