Survey: Consumers unhappy with video downloads

August 9, 2007, 12:53 PM UTC

If you’re among the folks wondering why Apple (AAPL) hasn’t said much about the progress of video downloads on iTunes, Parks Associates offers one answer: Consumers aren’t hooked.

Based on the results of a recent survey, the firm says consumers who have downloaded video don’t like the selection – just 16 percent say it’s “good.” Only 13 percent feel the download was worth the money. The Parks numbers show that people who download pirated movies using peer-to-peer services are more satisfied than those who use paid services such as iTunes, but consumers aren’t too satisfied with either method.

The survey did not include streaming video services such as Google’s (GOOG) YouTube. Consumers surveyed generally used either peer-to-peer networks or download stores.

“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.”

The numbers could serve as a warning to companies including Netflix (NFLX), Amazon (AMZN), Wal-Mart (WMT) and Blockbuster (BBI), which are jumping into the video download market. Blockbuster announced just this week that it will buy the MovieLink download service for an undisclosed sum.

The numbers: