So there's now officially 1001 different legal ways to go online and find movies. You can stream some for free, download others to rent or buy, and even sync many with a portable media device.But according to ABI Research, only about 5% of North American internet users that say they watch video on the internet have rented or purchased a downloaded movie. That's far fewer than the number of people who have downloaded movies for free from file sharing sites.
The most popular videos online are short clips, like those found on YouTube or news and sports websites.
ABI reports that half of the users surveyed said they would never bother paying for a movie online because their needs were adequately met by cable/television/DVD rentals.
Until it's easier to rent a movie online than to go to the corner store (read: super-fast downloads and/or the ability to watch as soon as the download begins, with almost no chance of a blip in the video as it buffers) and the experience is better than what you can get on a DVD (read: high definition videos delivered easily to your living room without having to set up a system any more complex than plugging in a DVD player -- and a near-infinite selection of videos available on demand), there just doesn't seem to be much reason for video enthusiasts to pay for movies online.
Of course, we're starting to see some of these barriers fall. TiVo and Apple are both working on ways to easily beam downloaded movies to your living room. The catalog of movies available online at sites like the iTunes store, CinemaNow, and MovieLink are constantly growing. But while many people are checking out funny YouTube videos during their free time at work, I think most see downloading a full-length movie as too much of a hassle. What do you think would make video downloads more popular? Or are downloads destined to take a backseat to traditional television and video delivery systems like broadcast, cable, and satellite?
1. Movie downloads are a great idea. Right now the selection is much too limited. I'm picking from what they want me to watch, not what I want to see. Also, the DRM restrictions are outrageous. If you press play on a rental, you only have 24 hours to finish watching. What happens if I can't finish a movie and have plans the next evening? I don't see what they would lose by allowing more and more viewing options, as long as piracy is protected.
Posted at 9:51PM on Dec 12th 2006 by Al Nyden