Forrester Research recently came out with a bold claim that paid internet video downloads have no future. The report claims that paid downloads will give way to ad-supported models.This claim waivers on one major issue: will quality internet video only be a mainly ad-supported business? And the answer is most definitely no.
The reason is mainly tied in with DVD sales and the fact that content owners will not want to switch to a questionable ad supported business when they have a lucrative DVD sales. However, they will be prepared to offer paid video downloads in addition to selling DVDs. Mike Wolf of ABIResearch is also thinking along the same lines.
This is something we can clearly see happening today with a variety of paid movie download sites such as Amazon Unbox, and a lack of legitimate free streaming TV episodes and movies.