May 14, 2007
Paid video downloads vs Ad supported streams
Forrester Research, in a report expected to be released today, predicts that paid video downloads will generate $279 million this year, nearly triple last year's amount. The research firm expects much bigger money to be made through advertising sponsorships. The LA Times reports.
"Like a flightless bird, the paid-video download market in its current evolutionary state will go the way of the dodo, despite the fast growth and the millions being spent today," Forrester analyst James McQuivey wrote in the report.
"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.
More and more people are watching video online," said Joe Laszlo, an analyst at Jupiter Research ."
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