Services like iTunes have no future. Research Forrester Research.
According to a study conducted by Forrester Research, this year, services that sell films and shows are likely to reach the height of their rapid development. According to experts, services that focus on the advertising model of content distribution will play a significant role in this.
This year, the expected amount of profit from the sale of video content will be $ 279 million, which is almost three times more than last year, when the total profit was $ 98 million. According to Forrester Research, in 2008 and the following years, the growth rates of this market will slow down and, most likely, will not set new records for a multiple increase in market capacity.
Analyst James McQuivey, who is the author of this study, believes that classic services are a dead end of the market.
The study also found that only 9% of users in the past year preferred stores that sell content according to the classical model. On average, this group of people spent $ 14 on film purchases and does not plan to spend more in subsequent years. First of all, according to Forrester Research, this situation will be caused by the launch of already announced services fully focused on the advertising model. An example is the already announced joint project of two giants of the media market News.Corp and NBC Universal, which will be launched in June of this year.
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James believes that free services will triumph in the impending battle between the old and the new content distribution model.
Of course, we can assume that users will prefer free services, but is it worth expecting companies such as NBC Universal to give users the opportunity to enjoy full-length movies for free?
Dependence on Internet connectivity; poor image and sound quality; a small proportion of people willing to watch full-length movies on the computer; the inability to fully control the viewing; limited advertising market capacity; these and many other factors, it seems to me, will become decisive in the upcoming fight of services for users and in fact predetermine a limited audience of services focused on the advertising model.
Classic services in turn have the opportunity to improve the quality of the image to the level of High Definition Video; expanding support for portable as well as other devices, both by standardizing video codecs and by entering into partnership agreements with electronics manufacturers.
I believe that advertising-oriented services will certainly be popular with a significant Internet audience, but the limited capacity of the advertising market will play its part in the profitability of these services.
Partially, an article from the Reuters site was used to describe the research content.
This year, the expected amount of profit from the sale of video content will be $ 279 million, which is almost three times more than last year, when the total profit was $ 98 million. According to Forrester Research, in 2008 and the following years, the growth rates of this market will slow down and, most likely, will not set new records for a multiple increase in market capacity.
Analyst James McQuivey, who is the author of this study, believes that classic services are a dead end of the market.
The study also found that only 9% of users in the past year preferred stores that sell content according to the classical model. On average, this group of people spent $ 14 on film purchases and does not plan to spend more in subsequent years. First of all, according to Forrester Research, this situation will be caused by the launch of already announced services fully focused on the advertising model. An example is the already announced joint project of two giants of the media market News.Corp and NBC Universal, which will be launched in June of this year.
')
James believes that free services will triumph in the impending battle between the old and the new content distribution model.
Of course, we can assume that users will prefer free services, but is it worth expecting companies such as NBC Universal to give users the opportunity to enjoy full-length movies for free?
Dependence on Internet connectivity; poor image and sound quality; a small proportion of people willing to watch full-length movies on the computer; the inability to fully control the viewing; limited advertising market capacity; these and many other factors, it seems to me, will become decisive in the upcoming fight of services for users and in fact predetermine a limited audience of services focused on the advertising model.
Classic services in turn have the opportunity to improve the quality of the image to the level of High Definition Video; expanding support for portable as well as other devices, both by standardizing video codecs and by entering into partnership agreements with electronics manufacturers.
I believe that advertising-oriented services will certainly be popular with a significant Internet audience, but the limited capacity of the advertising market will play its part in the profitability of these services.
Partially, an article from the Reuters site was used to describe the research content.
Source: https://habr.com/ru/post/8409/
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