Forrester Research is predicting that for pay downloading of movies and television shows from services like Apple’s iTunes and Amazon’s Unbox will peak soon and immediately decline afterwards, resulting in a dead end business. Forrester doesn’t predict the end of video downloading, only the pay for version. Ad supported downloading on the other hand will survive, according to Forrester. If you believe this Forrester prediction, companies like Apple and Amazon will have to radically rethink their business model. Movielink and CinemaNow, to early pioneers in downloaded VOD will be looking for telco and DBS partners soon, predicts Forrester. Is this another case of dot com hype, or a premature and inaccurate prediction of early demise?

Read this Yahoo Finance post for more explanation.

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