The research house reports that in a six-month period, U.S. online video subscribers spent almost $50 on average for video subscriptions while a la carte video typically garnered less than half that amount. From 2009 to 2010, the number of purchased movie and TV-show downloads dropped by 56%, and movie-rental downloads fell by 70%.
"The sands are shifting for manufacturers and content providers as expanding numbers of households access their TV-displayed content online," said Tricia Parks, CEO of Parks Associates, in a statement. "Methods include smart TVs and a host of connected devices, several of which are in a high-growth trajectory. This shift will create havoc with today's well-understood TV revenue model potential. All players want a piece of that revenue, but not all players will hold their current positions over time."