On iTunes, most movies cost between $9.99 and $19.99 for a digital download and rent for between $2.99 and $6.99. The value is determined largely by release date and popularity. These movies have million dollar budgets, high production values, and big-name stars. The sales can number into the hundred of thousands and account for millions of dollars of revenue for the studios that produce theses movies.
So you’ve produced a video maybe entirely on your smartphone or maybe you’ve overachieved and used a DSLR camera and edited with Adobe Premiere. It’s not going to premier at Cannes, but you are proud of it and think it has value for a specific audience (let’s be realistic, that audience is parents and grandparents of the stars of the video). This begs the question: “what is the value of the video?” There is a cost associated with hosting the video, processing payments, and delivering the video, not to mention the resources involved in the original production of the video. That said, pricing your video too low wouldn’t recoup your investment. The sweet starting selling point is around $2.99. The psychology of the .99 pricing structure has been proven over time to be effective, as consumers associate the amount to the lower dollar figure, rather than rounding up a penny to the higher dollar figure, plus it is an industry standard practice that consumers have come to expect. A sub three-dollar amount is low enough that patrons won’t deliberate the purchase, especially to support individuals or organizations.
What should a customer expect for a sub three dollar video? I would say a fairly polished video with a running time in the 5-15 minute range. Fairly polished meaning: steady camera work, clear audio, purposeful editing, and titles and credits. If you have several shorter videos, consider compiling them into a longer program.