Monday, May 14, 2007

Forrester: Paid download market has no future

Forrester Research has just published an article stating that paid downloads of video content is doomed to failure and that only ad supported models will work.

While we have many issues with the findings, the number one issue seems to be the lack of explaination on why ad supported models are viewed as preferred by consumers? With the popularity of Tivo and iTunes downloads it seems clear to us here at HungryFlix that consumers do in fact prefer to have long form content free of ads.

The research is in direct opposition to an Adams Media note from Feb. Here is a link:
http://today.reuters.com/news/articlenews.aspx?type=technologyNews&storyid=2007-02-21T143723Z_01_N21273243_RTRUKOC_0_US-INTERNET-VIDEO.xml&src=rss

HungryFlix.com has been providing paid movie downloads of premium indie films since 2005. We continue to see growth in the market.

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Comments:
You know the saying.... "Figures lie and liars figure."

Remember the days when the "experts" predicted that no one would pay to download music and look at the internet landscape now (thanks to LOTS of legal activity in that arena).
 
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