Hollywood studios will eventually charge less for entertainment streamed to small devices, basing prices on screen size, DreamWorks Animation SKG Inc. Chief Executive Officer Jeffrey Katzenberg predicted.
People will pay less to watch movies and television shows on a mobile phone than to see it in a theater, Katzenberg said today at the Founders Forum conference on digital media in Los Angeles. The move would create higher consumption in developing markets, such as India, where cell phones are widely used for entertainment, he said.
“People will pay by the square inch,” Katzenberg said. “If a cell phone version is 75 cents, you’ll get 350 million people in India to pay that.”
Studios are looking for ways to increase home-video sales in international markets. Foreign sales of movie tickets already outstrips revenue in the U.S. and Canada by a two-to-one margin. International sales in 2011 were $22.4 billion, compared to $10.2 billion in the U.S., according to the Motion Picture Association of America.