Online video stores such as Apple’s iTunes could peak this year as more advertising-supported content is made available for free, according to a new study by Forrester Research. The firm said sales of digital movies and television shows are expected to almost triple to $279 million in 2007, but that sales will likely flatten out next year.
“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 called the paid download video market a “dead end.” Networks including ABC, Fox and NBC are currently offering some shows online for free.
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