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	<title>AllThingsD &#187; Xbox Live Video</title>
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		<title>My Video Download Business! It&#039;s Melting, Melting. Ohhhhh, What a World, What a World</title>
		<link>http://allthingsd.com/20070514/video-downloads/</link>
		<comments>http://allthingsd.com/20070514/video-downloads/#comments</comments>
		<pubDate>Mon, 14 May 2007 19:14:24 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Amazon Unbox]]></category>
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		<description><![CDATA[Video downloads are going the way of the VHS tape. At least according to Forrester. The research outfit sees the paid download market continuing its growth through 2007--from $98 million to $279 million--and then stalling as advertising-supported TV streams take over the online video market.]]></description>
			<content:encoded><![CDATA[<p>Video downloads are going the way of the VHS tape. At least according to Forrester. The research outfit sees the paid download market continuing its growth through 2007&#8211;from $98 million to $279 million&#8211;and then<a href="http://investing.reuters.co.uk/news/articleinvesting.aspx?type=media&amp;storyID=nN13223876"> stalling as advertising-supported TV streams take over the online video market</a>. “The paid-video download market in its current evolutionary state will soon become extinct, despite the fast growth and the millions being spent today,” <a href="http://www.forrester.com/ER/Press/Release/0,1769,1144,00.html">Forrester theorizes</a>. “Television and cable networks will shift the bulk of paid downloading to ad-supported streams where they have control of ads and effective audience measurement. The movie studios, whose content only makes up a fraction of today’s paid downloads, will put their weight behind subscription models that imitate premium cable channel services.&#8221;</p>
<p>And what of Amazon Unbox? Xbox Live Video and Movielink? What of AppleTV and the iTunes juggernaut? Adapt or die, says Forrester. Only with ad-supported content will these ventures be able to compete with free TV-quality web streams. There simply aren&#8217;t enough media junkies to support the download model they&#8217;ve developed. &#8220;The people who pay to download video are extreme media-philes,&#8221; <a href="http://www.variety.com/article/VR1117964820.html?categoryid=18&amp;cs=1">Forrester analyst James McQuivey told Variety</a>. &#8220;They are not the tip of an iceberg. They may grow their own spending, but there aren&#8217;t many people like that left. In the video space, iTunes is just a temporary flash while consumers wait for better ways to get video. They&#8217;re already coming.&#8221;</p>
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		<title>My Video Download Business! It's Melting, Melting. Ohhhhh, What a World, What a World</title>
		<link>http://allthingsd.com/20070514/video-downloads-2/</link>
		<comments>http://allthingsd.com/20070514/video-downloads-2/#comments</comments>
		<pubDate>Mon, 14 May 2007 19:14:24 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Amazon Unbox]]></category>
		<category><![CDATA[Apple TV]]></category>
		<category><![CDATA[iTunes]]></category>
		<category><![CDATA[MovieLink]]></category>
		<category><![CDATA[Xbox Live Video]]></category>

		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/20070514/video-downloads/</guid>
		<description><![CDATA[Video downloads are going the way of the VHS tape. At least according to Forrester. The research outfit sees the paid download market continuing its growth through 2007--from $98 million to $279 million--and then stalling as advertising-supported TV streams take over the online video market.]]></description>
			<content:encoded><![CDATA[<p>Video downloads are going the way of the VHS tape. At least according to Forrester. The research outfit sees the paid download market continuing its growth through 2007&#8211;from $98 million to $279 million&#8211;and then<a href="http://investing.reuters.co.uk/news/articleinvesting.aspx?type=media&amp;storyID=nN13223876"> stalling as advertising-supported TV streams take over the online video market</a>. “The paid-video download market in its current evolutionary state will soon become extinct, despite the fast growth and the millions being spent today,” <a href="http://www.forrester.com/ER/Press/Release/0,1769,1144,00.html">Forrester theorizes</a>. “Television and cable networks will shift the bulk of paid downloading to ad-supported streams where they have control of ads and effective audience measurement. The movie studios, whose content only makes up a fraction of today’s paid downloads, will put their weight behind subscription models that imitate premium cable channel services.&#8221;</p>
<p>And what of Amazon Unbox? Xbox Live Video and Movielink? What of AppleTV and the iTunes juggernaut? Adapt or die, says Forrester. Only with ad-supported content will these ventures be able to compete with free TV-quality web streams. There simply aren&#8217;t enough media junkies to support the download model they&#8217;ve developed. &#8220;The people who pay to download video are extreme media-philes,&#8221; <a href="http://www.variety.com/article/VR1117964820.html?categoryid=18&amp;cs=1">Forrester analyst James McQuivey told Variety</a>. &#8220;They are not the tip of an iceberg. They may grow their own spending, but there aren&#8217;t many people like that left. In the video space, iTunes is just a temporary flash while consumers wait for better ways to get video. They&#8217;re already coming.&#8221;</p>
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