I'm not sure if you have ever paid to watch a video on the internet and even if you have I'd take a guess and predict that it was a rare occasion. It may therefore come to no surprise to you that demand for such a service seems to be quite limited. I personally wouldn't really know what site to turn to if I wanted to watch a full length movie that's just been released on DVD - sure such services may exist but they are definitely keeping a low profile.
I've heard that iTunes sells TV episodes (yet I can watch tons of stuff free on iPlayer so this seems pointless and it's usually more expensive than the boxed version!) but do they shift many units? I doubt it somehow. Who really wants a TV experience on their computer? I don't, I prefer the TV experience on my TV. What I could imagine myself doing is purchasing HD content for my Apple TV (which I love) once Apple finally gets their act together and provides the facility for me to hand over my hard earned cash.
It should also come to no surprise then that Brightcove just announced their discontinuation (which in normal English means they will no longer offer) of their Pay Media Functionality. In case you didn't know, Pay Media allowed 'publishers to sell or rent Windows media video titles directly to consumers via a Brightcove player'. According to Brightcove nobody really made use of the feature, and less than 1% of Brighcove customers are affected by the axing of the service. So out of all Brightcove publishers, less than one percent thought they could get punters to pay for a DRM'ed video. No tears shed here then.
And whatever happened to Joost, is anyone still watching that? Apparently it allows me to watch what I want, when I want. Hmmm, somehow that never worked for me and I could find nothing on Joost that I wanted to see...
So what's the deal here then? Do consumers really want to pay and consume video content over the internet? Or do they only like to consume, but not pay? Or maybe, are the offerings which would make consumers open their wallets simply not existent today?
In my opinion it's devices such as the Apple TV that lead the way. Choose, click, pay (now in the US and soon elsewhere), right from the comfort of your sofa, then watch on a nice big screen. I don't want to sitting front of my computer to watch a movie, even if it was free and HD. What matters to the crowd is convenience. The iPlayer experience in the living room would be a winner, hooked up to an easy way to pay. All that's left is for someone to build it.