Advanis Inc.

March 12, 2007 07:00 ET

Advanis Inc.: Americans Demand Cheaper Movie Downloads

79% of Americans who are downloading movies do so illegally despite access to subscription based services.

TORONTO, ONTARIO--(CCNMatthews - March 12, 2007) - US consumers are still downloading movies illegally despite the growing availability of subscription based movie download services according to a study conducted by Advanis Inc. Subscription based movie downloads have grown in prevalence with companies like Apple Inc., CinemaNow, MovieLink and most recently Wal-Mart offering movie downloads for a fee.

Yet 79% of those downloading movies are still doing so illegally, according to the study and is estimated to be costing the industry $598 million.

"The industry can respond to this stubborn core of piracy in one of two ways," said Phil Dwyer, Executive Vice President of Sales and Marketing at Advanis. "It can spend its time and resources pursuing the pirates, and attempting to get them to change their ways, or it can put those same resources into accelerating the adoption of these services by the early mainstream consumers, who are more inclined to behave legally."

"The experience of the music industry, and the evidence of our research suggests there is a hardcore of illegal downloaders who are unlikely to change their behavior. The industry would be better advised to focus resources on migrating new, and legally inclined consumers on to these services."

Downloaders Look For Deals

Despite the convenience of the movie download services, consumers are unwilling to pay a premium for them. In fact, online movie addicts, on average, value downloads at $2.59, while they value a movie bought in a store at more than double that - $5.98.

About this study

Findings are based on a survey of 506 online Americans, fielded between February 5th and 6th, 2007. Estimates are accurate to within +/- 4.6%, 19 times out of 20.

About Advanis

Advanis Inc. is a full service market research firm that provides expert, innovative analysis that helps companies address business critical issues in practical, actionable ways. Using a research-based approach to marketing consulting, our group of dedicated experts carefully craft studies that are representative of the real world, are of the highest quality, and deliver actionable results that help our clients with their business objectives.

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