Apple TV Boosting Projections

Posted by Phil Butler on February 22nd, 2007

Consumer spending on Internet downloads of movies and TV shows will top $4 billion in 2011 compared to the $111 million spent last year according to a study released by Adams Media Research. According to the study the new surge in growth is being fueled by the introduction of hardware devices like Apple TV, a $299 box that converts videos downloaded from the Internet into signals that can be played on HD TV's. Apple Inc. is selling these devices on its web site to be shipped later this month.

Adams Media Research is betting that the video downloads will ramp up gradually as Apple TV and similar services win acceptance and broad appeal. The market researchers forecast that sale of video downloads will total $472 million in 2007, $1.2 billion in 2008, $2 billion in 2009, $3.1 billion in 2010 and $4.1 billion be 2011. They also predict that downloads of Internet video streams to TV's and PC's will reach $1.7 billion by 2011.

I don't think this is really news to most people reading this post, but given all that we are seeing with video sharing, mergers and Internet TV forecasts from other business sectors this does fortify the growing enthusiasm and anticipation for new video media outlets. I am not so sure that the distribution of revenue can precisely be allocated over a 4 year period with the type of innovation we are seeing in streaming video, but there is no question that devices like Apple TV will account for their share. It is exciting to think we will be able to have more selection and quality at our fingertips without having to wait in line or be told something is out of stock. We will continue to watch and report the latest developments as we hear of them.

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