Annual consumer spending on Internet downloads of movies and television shows will top $4 billion in 2011, up from just $111 million last year, according to a study released Wednesday by Adams Media Research.
“The Internet is going to revolutionize the distribution of video,” says Adams Media Research President Tom Adams.
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After Wal-Mart jumped into the movie-download business, it is getting a competitor. CNN’s Stephanie Elam reports.
The growth will be fueled by the introduction of hardware devices such as Apple TV, a $299 box that converts videos downloaded from the Internet into signals that can be played on high-definition television sets.
Apple Inc. (Charts) is selling those boxes on its Web site and says they will be shipped later this month.