A recent report from IHS that tracked the viewing habits of Americans, indicated that 2012 will likely be the year that people consume more video on-line than from DVD and Blu-ray’s. The study projects that on-line viewing will increase from 1.4 billion movies in 2011 to reach 3.4 billion in 2012, compared to 2.4 billion expected views on physical media. Netflix will likely be the largest recipient of this increase, but other services such as Apple’s iTunes store, Amazon and traditional TV providers will also likely benefit. Traditional providers, such as cable and satellite companies are just now getting serious about the streaming movie business; there are even reports of cable companies talking with Netflix about a possible distribution deal. Another factor that is driving people towards on-line services is the increased quality of the video that is being made available. A case in point was the recent upgrade to HD videos in the iTunes store which followed the release of the new Apple set top box now capable of delivering full 1080p quality to your television. There is no doubt that people will continue to buy their movies on DVD’s and Blu-ray’s but as with CD’s, once on-line and streaming services become more convenient and simple to use, sales of physical media will decline. The only thing that could slow this decline is the cost and availability of sufficient bandwidth which is more of an issue in Canada than in the US.
Source: PC World