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MarketingVOX: Even as revenue from paid video downloads increases over the next few years, the ad-supported online video model could be in danger of becoming irrelevant, writes the Financial Times, citing a new report from Adams Media Research.
The study forecasts video-downloading revenues to reach $4.1 billion a year by 2011, whereas revenues from ad-supported online video are expected to reach only $1.7 billion in 2011 - not much of a gain over 2006 revenues of $409 million.
The shift in revenue expectations comes as consumers perform their own shift from a consumption pattern that resembles what they're used to - the ad-supported kind - to a download-to-own mindset. That change in behavior will be faciliated by more download services' coming to market and better technology powering those services.
Two big features that could result in a tipping point for download-to-own businesses are the connection of the computer and the TV, as with Apple TV, and the ability to back up downloaded movies to DVDs.
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