iTunes videos a dead end?

Online video vendors such as Apple's iTunes Store are likely to see sales peaks this year, according to one study, but that growth will taper off next year if consumers don't start paying for online videos in droves. Forrester Research expects sales of movies and TV shows to almost triple to almost $280 million this year from almost $100 million last year, according to Reuters. "In the video space, iTunes is just a temporary flash while consumers wait for better ways to get video. They're already coming," said Forrester Research analyst James McQuivey who authored the study. McQuivey also called the paid download video market a "dead end," according to the report, and estimates that sales growth is not likely to triple or even double in 2008 and beyond. "Free is going to win," said McQuivey.

by MacNN Staff