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Video downloads spending to surge?

22 February 2007 17:02 by James "Dela" Delahunty | 1 comment

Adams Media Research has published a study that estimated in the year 2011, spending on video downloads will have reached $4 billion. Last year, video downloads generated about $111 million in revenue. "The Internet is going to revolutionize the distribution of video," said Tom Adams, Adams Media Research president. Giants like Wal-Mart, Apple and Amazon offer downloads of premium movie and TV content to consumers.

Bridging the gap between PCs and CE equipment throughout a household is believed to be vital to the success of the online video market. The AppleTV device is designed specifically to do this but will have a lot of competition when it launches. Microsoft's Xbox 360 can download high definition content from the Xbox Live Video Marketplace for viewing on a TV screen without any further steps.

This is how Adams Media Research sees the market growing in the next few years...

Year 2007 - $472 million
Year 2008 - $1.2 billion
Year 2009 - $2 billion
Year 2010 - $3.1 billion
Year 2011 - $4 billion

Advertising supported video is expected to be the most popular option available until consumers can get content from the Internet to their TV screens much easier.

Source:
DailyTech

Permalink to this article

Microsoft gets more video for download service (28 March 2007)

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ZippyDSM (AfterDawn Addict) 23 February 2007 7:42
frankly they are wasting money in a sense,since at least 30-60% of the US dose not have board band and what board band it has is twice the cost it should be in most cases,without cheap medium speed board band everywhere they will never gain full profit off of this.... [ + quote]