Boomtime for online video sales

Consumers who have been waiting for better ways to buy video have something to cheer. A technology report has said that online video sites that sell television shows and movies will see a boom in 2007.

The reason could be because more programming is made available on free outlets supported by advertising. According to the report, sales of movies and television shows are expected to almost triple to $279 million in 2007 from an estimated $98 million last year. However, this may not last unless the average consumer begins paying for their online video en masse, the report added. It may be noted that confusion over different video file formats, difficulties watching downloaded videos on television screens and other technical problems have kept average users from paying for shows online.

The report quoting Forrester Research said that the sales growth is not likely to triple or even double in 2008 and beyond. This follows the phenomenon that early adopters and media addicts had already started using the services this year itself.

Meanwhile, there have been initiatives from media distribution companies to make more of their shows available for free on the Internet. Companies like the Hollywood-backed film service MovieLink, Wal-Mart and Amazon's Unbox are currently working against paid services. Many others have begun offering hit shows online for free.

With the adage ‘free is going to win,' the scene gets hotter. A report said that cable TV service companies and set top box makers are also seeking to make online videos easier to watch on big TV screens.

The report added that people had spent an average of $14 each to buy videos last year and will likely spend more this year as new online outlets debut.