AfterDawn: News

Consumer demand for movie downloads cooled in 2009

The movie industry has been hoping that digital downloads of movies will make up for lost revenue of falling DVD sales. In 2007 and 2008, legal movie downloading surged as more and more high profile players entered the market. However, while 2009 saw growth, it was way below analyst expectations and industry experts warn that the financial downturn doesn't explain it all.

A new report by Screen Digest showed movie downloading revenues in the U.S. of $291 million, way below the predicted $360 million haul. The total for 2008 hit $219 million, almost double what it was the year before. "The market just cooled off," said Arash Amel, a research director with Screen Digest. "This wasn't caused by economic factors . . . the level of interest in digital downloads just isn't there."



Consumer confusion is believed to be a large factor in cooling demand. Different avenues provide movie downloads with completely different limitations. "Digital downloading is characterised by its restrictions - it's all about what viewers can't do, rather than what they can do," added Mr Amel.

"Four years ago we thought this business would exceed $1.5bn by 2014 but now we think it will struggle to make $1bn."

Written by: James Delahunty @ 3 Mar 2010 16:23

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• 5 comments

• KillerBug

  Most of the early adopters got screwed over by DRM and will no longer even consider paying for a movie download, they warned their friends, and now only a small percentage of the population would even consider paying for a movie download.
  
  Serves the studios right...their DRM killed their own profits.

  3.3.2010 23:00 #1

• bluedogs

  Surprised they didnt blame illegal file sharing

  4.3.2010 09:03 #2

• malh

  If software companies can check computers for illegal programs, then in their time off, Can it be checked for your ID, Credit Card and other useful information that a criminal will pay for? Makes one think when so many wants to check up on what every one does on the PC. There are sone who loves dipping their mitts into our money. Now they are thinking of an excuse to get it another way. ..Checking for piracy? Who are the real benefit thieves? You should know.

  4.3.2010 16:18 #3

• avoidz

  Gee, you reckon annoying and confusing your customers wasn't such a great marketing move after all?

  4.3.2010 20:07 #4

• pspweazl

  I am considering this to be simple economics and corporate greed! The digital downloads can be just as expensive as buying the DVD from Wal-Mart when they come out, yet it costs nothing to manufacture them. People aren't going to pay the same if not more for a digital copy. Also a lot of people can't afford better media PC's that can handle playing these copies with any sort of decent quality, or buy the Peripherals (PS3's, Xbox's, etc) it takes to stream them to the other rooms in the home.
  
  Don't get me wrong I know the cost of PC's and all the hardware has decreased but still, folks don't have or are not willing to spend the money on that kind of luxury.
  
  Just my opinion.

  4.3.2010 23:16 #5