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February 17, 2006

From Podcasting News:

"Are Apple's $1.99 Video Downloads Doomed? February 16, 2006 : Rocketboom may be on to something. According to a recent report, consumers prefer commercial-sponsored on-demand video content to paying $1.99 for programs without commercials by a greater than three-to-one margin.

"Video downloads for $1.99 will have limited appeal. Consumers will grow tired of having their credit cards charged $1.99 every time they download a rerun of CSI," said Craig Leddy, an analyst with the Points North Group research firm.

When asked if they missed their favorite TV show and could watch it online or order it through cable or satellite, 62% of survey respondents said they would prefer getting it for free with commercials, versus 17% who chose paying $1.99 without commercials. 21% are undecided.

In the demographic of consumers aged 18-34, 68% chose free, ad-supported versus 26% favoring pay, and only 5% undecided. . ."


Originally posted by Drew from Dembot, remediated by yatta on Feb 17, 2006 at 12:47 PM