Internet trends: marketing research & predictions

Only 9% of online adults ever paid to download a video

May 15th, 2007 by

A recent Forrester survey showed that only nine percent of online adults have ever paid to download a movie or TV show. Furthermore, an analysis of these consumers showed they are a niche of “media junkies” willing to spend heavily on such content, thus, they do not represent the mainstream consumers. Without mainstream viewers, the video download market will not grow fast enough to support the ambitions of all the companies involved (in the past year, companies such as Apple, Amazon, Microsoft, and Wal-Mart have begun offering consumers the ability to download television programs and movies to own or rent).

“The paid video download market in its current evolutionary state will soon become extinct, despite the fast growth and the millions being spent today,” said Forrester Research Principal Analyst James McQuivey. “Television and cable networks will shift the bulk of paid downloading to ad-supported streams where they have control of ads and effective audience measurement. The movie studios, whose content only makes up a fraction of today’s paid downloads, will put their weight behind subscription models that imitate premium cable channel services.”

Forrester estimates that paid video downloads will peak in 2007, generating $279 million in revenue, up from $98 million last year. They believe that advertising models will drive the online video market.

According to this report, I must say that we are back to square 1: good content for free – we pay by being good audiences.

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2 Responses

  1. Jerry Says:

    Pretty simple equation if you ask me.

    Excessive Download times + repressive DRM + 0 desire to watch movies on my PC = will never download

  2. Truemors » i read that only 9% of online adults ever paid to download a video Says:

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