The paid video download model appears to be failing - consumers are dissatisfied and revenues disappointing.
Consumers Give Low Marks to Video Downloading — Only one in five users is satisfied A new survey from market research firm Parks Associates has found that few consumers in the U.S. are satisfied with the videos they download from the Internet. Just 16% say the selection of videos available online is good, and only 13% say video downloads are sold at a reasonable price. Most tellingly, fewer than one in five consumers downloading video say they plan to download videos again in the future. The data comes from Global Digital Living™ II, a 13-country survey of international technology trends that included more than 13,000 respondents. Learn more here.
In related news, the NYT reported that Google Is Closing Its Video Retailing Operation.
After buying the video-sharing site YouTube nine months ago for $1.65 billion, Google plans to stop selling television shows on its homegrown video site. The company will stop offering download-to-own and download-to-rent programs on Wednesday, according to an e-mail message sent to customers yesterday. Google started selling shows like ”Survivor” in January 2006.Google’s decision to close the retail part of its video site indicates the company had less success selling content than attracting advertising spending, which accounts for 99 percent of revenue.
Looks to me like consumers expect video content to be free and ad supported.
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