Could a Video Download Surge Hurt Media Cos?

mobilevideo.jpgA study on ad-supported and paid video downloads was released today by Adams Media Research that I think has an interesting connection to a piece I wrote the other day about software that grabs Flash streaming video.

According to the “Video on the Internet: Ad-Supported Streaming and Download-to-Own” report, advertiser spending on Internet video streams to PCs and TVs will near $1.7 billion by 2011. Far more, it predicts, will come from consumer spending on movie and TV downloads: $4.1 billion.
The firm thinks ad-supported video will dominate during an experimentation phase between now and 2009. Afterwards, spending on video downloads will ramp up, since more and more people will have Internet-enabled televisions.

Most people I spoke with about Applian’s new software, which allows users to grab streaming Flash videos and archive them on their PCs, didn’t see a huge threat to content producers, video distributors or advertisers. But if the number of people downloading videos is set to grow substantially, surely more people will seek out inexpensive software like this, allowing them to grab videos, and either view them on their TVs, or their PCs or mobile devices, rather than paying content owners for them. Already today, with conversion software, they can watch the streaming video files they downloaded on their phones or iPods.

Hey, who knows?

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