No future for online video sales, says study

— 11:53 AM on May 14, 2007

A new study by Forrester Research claims that online services that sell movie and TV show downloads, such as Apple's iTunes Store, have no future. As Reuters reports, the study says online movie and TV show sales will nearly triple to a total of $279 million this year, but that growth "will likely peter out next year." According to Forrester Research analyst James McQuivey, who authored the study, paid video download services are a "dead end." McQuivey elaborates, "In the video space, iTunes is just a temporary flash while consumers wait for better ways to get video. They're already coming."

Reuters says not only have technical hang-ups like file format confusion discouraged users from buying shows on the Internet, but traditional media distribution firms are already working to make video content available online for free. TV networks like ABC and Fox already have some shows available online free of charge, Reuters specifies, and News Corp. as well as NBC Universal have also created a joint venture that will distribute a "combined archive of shows."

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