I see this report stating that the iTunes video model will soon peak and not be successful, which I find pretty funny. The reason I find it funny is because it seems like a wanna be self fulfilling prophecy by big media, who just doesn’t get Internet media. Sure the instant gratification is great, but most people would rather use the VOD features of their main provider if that is their main goal. The reason why people download content from the iTunes Music store is the same reason they buy DVDs; they want to own the content and they want to watch it when they want, where they want. Saying the iTunes Video model will not survive is like saying DVDs will stop continue to be successful. The other models require that you be at your computer and you can’t fast forward through the advertisements.
When will these analyst learn that it is the freedom to watch what we want, when we want that makes iTunes –and DVD for that matter– popular.
I think the download television market for iTunes might run into some problems. ABC is going to start streaming in HD this summer most of their shows. Why buy Lost when you can stream it in HD for free?
That being said, delivery of video over the internet is just beginning. To think otherwise is silly.
I’m not saying there won’t be streaming HD online.
I am just saying that 2Mbps streaming HD from ABC.com with unskipable commercials that require you to be connected to the Internet to watch, will not completely take the place of downloadable HD movies and shows from iTunes. People will pay for quality, the lack of commercials and the freedom to watch their content on a plane or anywhere Internet access isn’t available.