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Selling online video: rise of 'value-add economics'

Summary.... Internet and technology companies, retailers and e-commerce businesses have made virtually no meaningful financial return from selling digital movies and TV downloads direct to consumers, because of high wholesale price expectations from content owners, and low volume consumption. Entertainment hardware manufactuers like Apple, Microsoft and Sony, however, will exploit the paid-for video segment to drive other profit centers such as hardware and games. Otherwise B2B companies stand to gain the most: that is, content owners and companies enabling and providing online video.
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