Why Movies Beat Subscriptions Psychologically | Generated by AI
This is a classic example of the difference in perceived value and psychological ownership between a “one-time event” and a “subscription service.”
Here are the key reasons why people are willing to spend 40–60 RMB on a movie ticket but hesitate to pay a monthly fee for streaming or music services:
1. Tangible Experience vs. Intangible Utility (The “Event” Factor)
- The Movie is an “Outing”: Going to the cinema is a social event. You pay for a specific time, a specific date, and a specific experience. It involves leaving the house, getting popcorn, and watching a film on a massive screen with high-end sound. It feels like a special occasion, making the price feel justified.
- Streaming is a “Commodity”: Listening to music or watching shows at home is background noise or daily routine. Because it happens on a device you already own (phone/TV), it feels like the service should be cheap or free. It lacks the “special occasion” premium.
2. Mental Accounting (The “Hassle” Factor)
- One-and-Done vs. Enduring Commitment: With a movie ticket, the transaction ends the moment the lights go down. You pay once, and you’re done. There is no future anxiety.
- Subscription Anxiety: A monthly fee feels like a “leaky bucket.” It’s a recurring charge that sits in the background. Many people hate the feeling of money leaving their account every month for something they might not use enough. This psychological weight makes them resistant to subscribing, even if they would happily spend triple the amount on individual tickets over the same period.
3. The “Window” vs. The “Library”
- The First Window: When you pay 60 RMB for a ticket, you are paying for the “first window.” You are seeing the movie before anyone else can see it legally at home. You are paying for immediacy and to avoid spoilers.
- The Library: When you pay for iQiyi or Tencent Music, you are paying for access to a library of content. Much of that library is older, and the “new hits” often require an additional VIP fee anyway. Consumers feel they are paying for “leftovers” rather than the premium first look.
4. Piracy and the “Freemium” Expectation
- Music: For nearly two decades, Chinese internet users had free access to music via services like Kugou or Baidu MP3. Paying for music feels like paying for air—it was once free, and it’s difficult to reverse that psychological contract.
- Video: While movies were also pirated, the cinema experience (big screen, date night) could not be pirated. You cannot replicate the cinema at home. However, you can replicate a streaming service’s catalog through a quick internet search. Therefore, the unique selling point of the cinema (the experience) is harder to pirate than the content itself.
5. The “Sunk Cost” of Advertising
- Movie Theaters: You pay 60 RMB, and you watch the movie uninterrupted (after the trailers).
- Streaming Services: Even after paying a monthly fee on many platforms, users are often still bombarded with ads (unless they pay for the highest tier). This creates resentment. The consumer thinks, “I paid 60 RMB for a movie and got 2 hours of peace. I paid 30 RMB for a membership and still have to watch shampoo ads.”
6. Social Pressure (FOMO)
- The Water Cooler Effect: When a blockbuster like The Wandering Earth 2 or Ne Zha comes out, everyone is talking about it. There is immense social pressure to see it immediately to participate in the conversation. You cannot wait.
- The Binge Culture: With streaming, there is no social pressure to watch a specific show right now. You can always “watch it later.” Because there is no urgency, the desire to pay fades away.
Summary
People pay for the cinema because they are buying a time-sensitive, social experience that cannot be replicated at home. They hesitate to pay for streaming because they view it as paying for convenience (which they feel should be cheap) and they resent the fact that it still feels like a limited, ad-filled product compared to the “pure” experience of the cinema.