Published: March 3, 2008
Apple TV, Vudu, Movielink, Unbox: the Internet is littered with ventures that offer the ability to download movies legally online. Few have had the predicted success. A new report by the Diffusion Group, a research firm, says that less than 10 percent of adults with broadband connections have ever used such services, and only about 1 percent use them frequently. TDG surveyed 1,975 broadband users.
The problem, said Michael Greeson, the report’s author, is that many services deliver movies solely to users’ computers. Those services that pipe movies to the television generally charge $100 to $300 for equipment.
“People want to watch long-form video on their television sets,” Mr. Greeson said. “We put the most money into the living room TV. That’s where our high-def sets are, and that’s where the surround sound is.”
By contrast, viewers are happy to watch short-form video — TV shows and the like — on the Internet. But that interest does not carry over to cellphones yet. “All our research keeps pointing at a lack of interest among consumers in viewing video on the mobile phone,” Mr. Greeson said. So much for I phone hype.
