Digital Downloads Not Down

February 21, 2007

dvd-case[1]According to this Reuters article “Annual consumer spending on Internet downloads of movies and TV shows will top $4 billion in 2011”. Okay, that part doesn’t surprise me all that much, after all that’s still relatively a small portion of the physical home video market, (estimated at 16.3 billion for DVD alone in 2005) the surprising part is the overall increase from last year.

By comparison a paltry $111 million worth of digital downloads were sold in 2006 according to Adams Media Research. That’s a huge increase and I can’t help but wonder what will drive it. Of course services like Amazon’s Un-Box, iTunes with their recently launched movie downloads, and of course services like Movielink and CinemaNow all contribute to the overall bottom line, but even so in my estimation we’re looking at a seismic shift in consumer interest here.

Adams Media Research feels that devices like AppleTV will help propel movie downloads in the coming years and while I agree to an extent, I still have to wonder if the added incentives of 1080p video, increased interactivity, and high resolution audio from Blu-ray and HD DVD can (bad pun incoming) take a bite out of Apple and the other download services.

Let’s face it, without a two-fold (minimum) increase in the average households internet connection speed, many of the features of BD & HD DVD aren’t realistic in a download. But then again you need only look as far as SACD and DVD-A to know that portability and convenience trump quality, at least with music downloader’s. Now let’s see if the same holds true for video downloads.



Posted by Bryan Greenway | | Filed Under HTPC


Comments

  • Kalroy

    I’m liking the downloads on XBox Live. Had a bad glitch with Superman in HD, however, and had to get a refund. It wouldn’t play past the halfway point for me.

    On the other hand it looked wonderful up until that point. The standard def stuff looks great and was easy to download and watch.

    Kalroy

  • Kalroy

    I’m liking the downloads on XBox Live. Had a bad glitch with Superman in HD, however, and had to get a refund. It wouldn’t play past the halfway point for me.

    On the other hand it looked wonderful up until that point. The standard def stuff looks great and was easy to download and watch.

    Kalroy