Skip to main content

Video Download Business is Still Experimental

Better-than-expected sales for online downloads of TV series are raising expectations after Apple recently announced more than 15 million purchases since video debuted on iTunes last October. While initial results are encouraging, the video download business is still in an experimental phase. Kagan Research says that the early high volume is due in part to both the novelty and "early adopters" with abnormally high buy rates.

"Video downloads as offered in their present form are not likely to be a huge business for content owners," says Deana Myers, senior analyst at Kagan Research. "Once content owners figure out what model � or models � work best for Internet delivery of on-demand video, revenues could be significant. For example, content owners could allow higher-quality downloads that enable consumers to burn personal DVDs. They would be priced higher than downloads today, as they will compete with pre-recorded DVDs."

In a keynote delivered to the 23rd Annual Kagan Radio/TV Values & Finance Summit March 23 in New York City, Jay Ireland, president of NBC Universal Television Stations, noted that a staggering 5 billion downloads of TV series episodes at a retail $2 per segment would be necessary to match NBC Television�s existing $7 billion in annual revenue. That underscores how much traffic downloads would need to eclipse existing media revenue.

Popular posts from this blog

The Evolution of Personal Computing in 2025

The personal computing device market continues to demonstrate remarkable resilience despite recent fluctuations. According to the latest worldwide market study by International Data Corporation (IDC), global PC shipments are projected to reach 273 million units in 2025—a modest but significant 3.7 percent increase over the previous year. This growth reflects the market's adaptation to post-pandemic realities and evolving technology needs across the globe. Personal Computing Market Development While COVID-19 initially triggered unprecedented demand for computing devices during the shift to remote work and online education, we now see a more measured growth pattern. IDC has slightly adjusted its projections downward, indicating a market growing steadily rather than explosively. "In light of so many challenges around the world, Japan is a much-needed source of double-digit growth this year. Enterprises there as well as SMBs have been quickly replacing PCs in advance of the Window...