Washington, D.C.
(March 27, 2007)
-- Despite the buzz, a new report says online TV and
movie downloads will generate little revenue in the
coming years.
The report, released yesterday by the Convergence Consulting Group, says entertainment companies will get a much bigger payoff from cable on demand services, which can offer High-Definition programming.
The report was cited in today's Video Business.
Video Business writes that the CCG report says movie and TV show downloads will be just two percent of DVD sales this year, growing to only eight percent of DVD sales in 2009.
The report, released yesterday by the Convergence Consulting Group, says entertainment companies will get a much bigger payoff from cable on demand services, which can offer High-Definition programming.
The report was cited in today's Video Business.
Video Business writes that the CCG report says movie and TV show downloads will be just two percent of DVD sales this year, growing to only eight percent of DVD sales in 2009.
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Apple's iTunes store, which offers TV shows and movies online, has generated an enormous amount of publicity over the last year. But the CCG report calls sales of Disney movies on iTunes "unimpressive" so far. The group said Disney has sold just 800 movies a week on average over the last six months.
TV shows at iTunes are not doing much better, the report says. The average show at iTunes has sold just 200,000 episodes, which it says is the average revenue of one TV commercial.
The CCG report advises entertainment companies to be careful of investing too heavily in online services. Instead, it says Video on Demand services offered by cable companies could be more attractive because they have more subscribers and they can offer programs in high-def.
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© TVPredictions.com
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Apple's iTunes store, which offers TV shows and movies online, has generated an enormous amount of publicity over the last year. But the CCG report calls sales of Disney movies on iTunes "unimpressive" so far. The group said Disney has sold just 800 movies a week on average over the last six months.
TV shows at iTunes are not doing much better, the report says. The average show at iTunes has sold just 200,000 episodes, which it says is the average revenue of one TV commercial.
The CCG report advises entertainment companies to be careful of investing too heavily in online services. Instead, it says Video on Demand services offered by cable companies could be more attractive because they have more subscribers and they can offer programs in high-def.
Comment on this article!
Click TVPredictions.com to see today's Swanni Sez.
© TVPredictions.com
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Phillip Swann is president and publisher of
TVPredictions.com. He has been quoted in dozens of
publications and broadcast outlets, including CNN,
Fox News, Inside Edition, The New York Times, The
Washington Post, The Chicago Tribune, The Financial
Times, The Associated Press and The Hollywood
Reporter. He can be reached at
swann@tvpredictions.com
or at 703-505-3064.
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