Video Access: Buying Out, Streaming In

According to a report by Parks Associates, consumer attitudes toward video access are changing, moving away from ownership and rental models to streaming and subscription services, as connected CE and smart TVs proliferate in the United States and Western Europe...

According to a report by Parks Associates, consumer attitudes toward video access are changing, moving away from ownership and rental models to streaming and subscription services, as connected CE and smart TVs proliferate in the United States and Western Europe.

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."
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