Jerry,

Do you not think global internet bandwidth from country to country, coupled with the larger gigabyte based file sizes will make movie downloads a rather restrictive market though for (at the very least) another half decade? Storage becomes another issue. I just don't see it becoming a realistic outcome in the mainstream market like music has because it would actually command a high level of investment from the user.

In addition, iTunes has shown how content providers can restrict sales to specific territories. For example, I can't access any of those TV shows currently available on iTunes in the States because I am in the UK. Similarly, those using the iTunes store in one country cannot make purchases from the iTunes store of another country. As someone who has always enjoyed legitimately importing content (films, music, games…etc), and believing I have every free right to do so, being lumbered with a future where I`d have no choice of content other than that which is directly marketed to my country does not thrill me. To take a recent movie example, they censored Casino Royale here. If the future was downloads chances are I wouldn`t be able to legitimately access a US download service and get an American copy of the movie which might force my hand to *gasp* seek out unofficial means of obtaining what I want. The reality is online downloads are more restrictive than they appear on the surface.

For music, downloads work well enough however. Small file sizes of content adequately suit a portable medium like an iPod, yet there has in fact been recent evidence showing that sales on iTunes are not exactly as strong as people expected. On average, reports suggest they`re not actually being perpetuated by sales of ipods to any great extent and that the average number of songs paid for and downloaded in accordance with ipods sold is really rather slim.

Many, like myself, might buy an iPod for use as holding music already in my CD collection. I find no more purpose in an iPod than I would a cassette or CD based walkman. It`s just more convenient in being able to hold more music for me to take with me when I am out and about. It was a perfect evolution for such portable devices. I won`t buy music online as I like a hard copy, plus I refuse to pay for compressed audio content, and although many won`t decide against buying from itunes for similarly pedantic reasons, I do think - and indeed hope - people do have a great fondness for buying a physical product as I personally believe it contributes to a consumers perception of value and that this might be another factor contributing to why I feel movie downloads will not take off to any significant degree.