Trends Report

Paid Video Downloads Give Way To Ad Models

The Industry Must Pull In Mainstream Viewers To Grow Beyond Today's Modest Download Market

May 11th, 2007
James McQuivey, PhD, VP, Research Director
James McQuivey, PhD VP, Research Director
With contributors:
Bradford Holmes , April Lawson

Summary

An all-star cast of players premiered online video download services in early 2007. The question of who will dominate is moot since there is no long-term market to master. Sure, a small market is coming: Current downloaders are media addicts who will spend aggressively in 2007, driving revenues up to $279 million from just $98 million last year. The paid download market, however, is ultimately a dead end. To attract mainstream viewers, media strategy executives must develop new business models and delivery mechanisms to make video downloading ad-supported and geek free.

Want to read the full report?

Contact us to become a client

This report is available for individual purchase ($1495).

Forrester helps business and technology leaders use customer obsession to accelerate growth. That means empowering you to put the customer at the center of everything you do: your leadership strategy, and operations. Becoming a customer-obsessed organization requires change — it requires being bold. We give business and technology leaders the confidence to put bold into action, shaping and guiding how to navigate today's unprecedented change in order to succeed.