Less than 10 percent willing to pay for video downloads, Forrester says
May 22, 2007
The paid video download market is a dead end, according to a new report by Forrester Research.
The tech research firm estimates that paid video downloads will peak in 2007, generating $279 million in revenue, up from $98 million last year. Instead, advertising models will drive the online video market.
In the past year, companies such as Apple, Amazon, Microsoft and Wal-Mart have begun offering consumers the ability to download TV programs and movies to own or rent. But a recent Forrester survey showed that only 9 percent of online adults have ever paid to download a movie or TV show.
A recent Forrester report, "Paid Video Downloads Give Way To Ad Models," concluded that these consumers showed they were a niche of media junkies willing to pay for such content. They do not represent the vanguard of a rush by mainstream consumers. Without mainstream viewers joining the party, the video download market will not grow fast enough to support the ambitions of all the companies involved.
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