US consumers are still downloading movies illegally despite the growing availability of subscription based movie download services according to a study conducted by Advanis.

Subscription-based movie downloads have grown in prevalence with companies like Apple Inc., CinemaNow, MovieLink and most recently Wal-Mart offering movie downloads for a fee.

Yet, 79% of those downloading movies are still doing so illegally, according to the study and is estimated to be costing the industry $598 million.

"The industry can respond to this stubborn core of piracy in one of two ways," said Phil Dwyer, Executive Vice President of Sales and Marketing at Advanis. "It can spend its time and resources pursuing the pirates, and attempting to get them to change their ways, or it can put those same resources into accelerating the adoption of these services by the early mainstream consumers, who are more inclined to behave legally."

"The experience of the music industry, and the evidence of our research suggests there is a hardcore of illegal downloaders who are unlikely to change their behavior. The industry would be better advised to focus resources on migrating new, and legally inclined consumers on to these services."

Despite the convenience of the movie download services, consumers are unwilling to pay a premium for them. In fact, online movie addicts, on average, value downloads at $2.59, while they value a movie bought in a store at more than double that – $5.98.

The study findings are based on a survey of 506 online Americans, fielded between February 5th and 6th, 2007. Estimates are accurate to within +/- 4.6%, 19 times out of 20.

Story filed 19.03.07