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
With contributors:
Bradford Holmes , April Lawson


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.

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