Singapore- The paid video download market in the U.S. is doomed and ad-paid models will drive the online video market, according to a recent report by Forrester Research. “The paid video download market in its current evolutionary state will soon become extinct, despite the fast growth and the millions being spent today,” said Forrester Research analyst James McQuivey. “Television and cable networks will shift the bulk of paid downloading to ad-supported streams where they have control of ads and effective audience measurement. The movie studios, whose content only makes up a fraction of today’s paid downloads, will put their weight behind subscription models that imitate premium cable channel services.” Such cut-and-dried predictions can’t be extrapolated to Asia, where a range of different economic and technology factors are in play. “Advertising supported models are still limited by the economics of the high cost of content delivery over the internet. So to get a high quality full screen picture costs the service provider
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