• by Laurie Petersen , August 10, 2007

Only one in five U.S. consumers who have downloaded video say they plan to do it again, reports market research firm Parks Associates. Maybe someone should tell Blockbuster, which just acquired video downloader Movielink.

"People don't see a reason to use video downloading services," said John Barrett, director of research at Parks Associates. "Sure, it saves a trip to the video store, but it takes longer, looks worse, and you end up watching it on a 17-inch screen. No wonder consumers are dissatisfied with the experience."

Just 16% of those surveyed by Parks say the selection of videos available online is good, and only 13% say video downloads are sold at a reasonable price.

Consumers generally download video from one of two sources, the researchers found: peer-to-peer networks that offer unauthorized copies of TV programs and films, or licensed online services like iTunes.

Low satisfaction levels might be expected for consumers using unlicensed sources, Parks notes, because their quality and reliability are generally low--a consequence of being an unlicensed service. But users of mainstream sources also reported high dissatisfaction levels.

Barrett said niche markets will emerge, but mainstream consumers will remain lukewarm about the video download experience.