15% of video downloads are legal - Converting to paying to yield $2.5 billion - AVS Forum
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post #1 of 2 Old 07-07-2009, 07:22 PM - Thread Starter
 
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American consumers with broadband Internet service download 14 billion movies and videos a year, but just a fraction of those, 15%, are legally purchased, according to a new report, Adopting Digital Rights Information Management, from research firm In-Stat, a sister company to VB.

The majority of those films are likely downloaded and shared through peer-to-peer online sites by a small subset of broadband households. But rather than go after those households with lawsuits, treat them as criminals or lobby legislators for more copyright protection, In-Stat said studios could instead convert them into legal purchasers by making it easier for them and other consumers to watch movies when and where they want.

The long-term evolution of this space is pretty well agreed upon that people will ultimately get the content they want on the screen of choice where they want and when they want it, principal analyst Keith Nissen said. It's a question of how do you get there.

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He predicts that as consumers become more used to watching content when they want it, more people will fall into the group of heavy users that do use P2P networks to watch shows when they can't find them legally.

These represent the next generation of consumers, Nissen said. Content holders should be watching these people. If you set up strategies for monetizing online video or video in general, and you satisfy this group, then you're setting yourself up for long-term success.

By converting illegal viewers into paying customers, Nissen projects that content holders could generate $1.4 billion in subscription revenue and $1.1 billion in advertising revenue.

Nissen said simply making movies available on Netflix's streaming service would make it appealing enough for most P2P users, many of whom are already Netflix subscribers, to just watch there rather than use illegal file-sharing networks to get downloads.

http://www.videobusiness.com/article/CA6669533.html
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post #2 of 2 Old 07-07-2009, 07:30 PM - Thread Starter
 
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What is needed is a new approach to monetizing digital content, including moving a relatively small group of consumer households that do the bulk of P2P downloading (power users) to legal services, said analyst Keith Nissen. The question is whether the video industry wishes to control its own destiny or get crushed by technological change, similar to what is occurring in the music business.

http://www.homemediamagazine.com/dow...perience-16276
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