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Paid Video Downloads to Peak in ‘07
Forrester Research has released a report saying the market for paid video downloads will peak this year.
The survey says only nine percent of online adults have paid to download videos from services like iTunes or Amazon’s UnBox marketplace, reports PaidContent (via MarketingVOX). That percentage is not likely to increase or expand beyond the early adopters that will pay ambitious prices for media.
The market will instead shift to primarily subscription-based services and ad-supported offerings. Movie studios, for instance, are likely to support a subscription model that mimics premium cable services.
Forrester expects Apple will have to make Apple TV more of an all-encompassing portal rather than a closed ecosystem if it wants to survive. The firm also predicts ad-supported TV show streaming will leap over DVR usage in 2008 because of increased flexibility and lower cost.