SALES OF MOVIE DOWNLOADS TO SOAR, SAYS STUDY

SALES OF MOVIE DOWNLOADS TO SOAR, SAYS STUDY

By 2011 movie downloads will generate $720 million in the U.S. for studios and producers, a figure that amounts to 18 percent of their entire domestic gross over the past season, according to a study by Screen Digest. Moreover, that revenue will flow directly to the content owners -- no movie theaters to share it with, no costs for prints, shipping and local advertising. The study also indicated that an additional $572 million will be generated by downloads in Western Europe. The potential for far greater revenue extends beyond 2011, the study concluded, when consumers are provided with simple devices to watch downloaded movies on large screen TVs and home entertainment systems. Nevertheless, the study noted, the studios will have to perform "a delicate balancing act" in order the maintain their relationships with DVD sellers "whilst meeting growing consumer demand for immediate online downloads." (Separately, today's Wall Street Journal, citing no source, said that the total market for online video is expected to reach $7 billion by 2010.)

04/09/2007