It has frequently been said that free ad supported video content is preferable to paid content and now there is a detailed report that examines the paid video download market and terms it “ultimately a dead end.”
The quote comes from James McQuivey, the Forrester Research, Inc. analyst whose May 11 report is entitled, “Paid Video Downloads Give Way to Ad Models.” The report analyzes the paid download market before encouraging marketers to play free, ad-supported content.
McQuivey begins by identifying some of the leading paid download players, from Wal-Mart Stores to Amazon.com, who play pure PC downloads and PC to TV models that play on HDTVs. These companies are challenging iTunes, which is the leader in the paid content space.
“You might expect that these firms see an avalanche of consumer demand,” McQuivey said. “Sorry to disappoint, but only 9 percent of online adults have ever paid to download a movie or TV show.”
McQuivey provides demographic information on the paid download audience, finding it to be primarily male (68 percent), fairly young (40.8, five years younger than the typical online adult), upscale ($78,563. income) and heavy Internet users (18.1 hours per week).
He sees the market peaking this year, when $279 million will be spent. “Downloaders will spend more this year than last since there will be more to buy from a larger number of sources. Plus, they will be joined by a group of slightly less media-intense downloaders. However, this niche can’t sustain dramatic growth beyond 2007.”
He said mainstream video fans will not ramp up their buying because: the PC-to-TV barrier is still huge; media firms are slow to offer their content for paid download; and confusing use rights impede take up.
As the paid content market shrinks, “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,” McQuivey said.
He cited free TV streams, including Abc.com’s player and the moves by NBC and News Corp. and CBS to push their TV shows out to partners like AOL, MSN and Yahoo! “With all the top networks putting up free content at such high quality, why would people pay for downloads?” he asked.
McQuivey concluded by encouraging content providers to play more free ad-supported content. “Advertising will remain the most lucrative way to get people to ‘pay’ to watch TV shows,” he said. “With dwindling prime time audiences and the rise of ad-based viewing models everywhere from CBS.com to Joost, advertisers will rush to support the video streaming models that will deliver the audience their ad budgets require.”
Director Dag Johan Haugerud’s “Dreams (Sex Love)” Wins Top Prize At The Berlin Film Festival
A Norwegian film about love, desire and self-discovery won top honors at the 75th Berlin International Film Festival on Saturday.
A jury headed by American director Todd Haynes awarded the Golden Bear trophy to "Dreams (Sex Love)" by director Dag Johan Haugerud.
Haynes called it a "meditation on love" that "cuts you to the quick with its keen intelligence."
The film focuses on a teenager played by Ella Øverbyer, infatuated with her female French teacher, and the reactions of her mother and grandmother when they discover her private writings. It's the third part of a trilogy Haugerud has completed in the past year. "Sex" premiered at Berlin in 2024, and "Love" was screened at the 2024 Venice Film Festival.
The runner-up Silver Bear prize went to Brazilian director Gabriel Mascaro's dystopian drama "The Blue Trail." Argentine director Ivan Fund's rural saga "The Message" won the third-place Jury Prize.
The best director prize went to Huo Meng for "Living the Land," set in fast-changing 1990s China.
Rose Byrne was named best performer for her role as an overwhelmed mother in the Mary Bronstein-directed "If I Had Legs, I'd Kick You." Andrew Scott won the supporting performer trophy for playing composer Richard Rodgers in Richard Linklater's "Blue Moon."
The climax of the festival known as the Berlinale came on the eve of Germany's parliamentary elections after a campaign dominated by migration and the economy.
The national election is being held seven months early, after Chancellor Olaf Scholz's governing coalition collapsed in a dispute about how to revitalize the country's economy.
Efforts to curb migration have emerged as a central issue in the campaign — along with the question of how to handle the... Read More