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Ownership will Drive VOD Spending

Downloading movies to own rather than paying for a short-term rental period will drive video-on-demand spending over the next decade, according to a study released Tuesday by Screen Digest in the U.K. and U.S.-based Adams Media Research. The study suggested that the Apple iTunes model, where consumers purchase content outright rather than a temporary download, would drive movie VOD. "Video-on-demand technology is spreading rapidly, and will become pervasive in the decade ahead," said Adams Media Research's president and senior analyst Tom Adams. "But turning that technology into a substantial movie market is going to require a complete reassessment of the industry's 10 year-old assumptions about VOD."

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