Ad-Supported Video Loses, Apple TV Wins
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Written By Kate Zimmermann | February 22, 2007 | Share This
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A report by Adams Media Research says that by 2011, the pay-to-download model will dominate online video distribution. Whereas ad-supported streaming will likely see revenues of $1.7 billion annually, paid downloads are expected to generate $4.1 billion a year in revenues. Tom Adams, president and senior analyst for Adams Media Research tells the Financial Times,
“The real issue becomes the connection to the TV…Given all the [recent] excitement about product launches, there is a general feeling that the market is bigger than it is, and that boom times are just around the corner.”
Though Apple TV was announced as more of an afterthought to the iPhone, thanks to high demand for download-to-own online TV shows and movies, it might end up as Apple’s Next Big Thing. MovieWeb questions whether Apple TV will kill DVDs, while The Apple Core calls it the “Trojan Horse of the Living Room.” The Apple Recon blog even rumors that Apple TV sales have already blown away expectations by more than double initial estimates.
Topics: Apple |