Dow down 18% in one week — what does this mean for video?

October 10, 2008

I’m busy working on a piece for Forrester about what a down economy does for video. I’ll be finished next week and can share more then, but in the process of speaking to people in the industry, I came across a bright spot, at least as Simon Fleming-Wood, VP of Marketing for Pure Digital, the maker of the phenomenal rags-to-riches Flip digital video cameras. In a recent conversation, I broached the topic of a down economy and mentioned that while many were optimisitc about the future of free services like online video (for obvious reasons), some are nervous about the prospects for devices this holiday buying season. But Simon isn’t seeing it:

We are cautiously optimistic.  Our retail partners have increased their forecasts for sales of our products over the last 3 weeks. The President of the United States went on television in an unprecedent event to tell the nation that we were in an economic crisis. Yet our sales went up that week.

Bully for Pure Digital. It helps that the Flip cameras are positioned as low-cost digital video cameras, of course. I don’t imagine Sony and Canon are as sanguine about their prospects this quarter. But it goes to show that even in a down economy, the right product targeted at the right market with the right features can succeed.

What do you think? Are you afraid for any particular products or services? Will premium cable channels suffer? Will that 2nd DVR get postponed to next year? Will Hulu.com take over the world with its free content?

Tell me what you think will happen or what you are doing personally. For example, I’m cutting back on premium movie channels (that I don’t watch enough anyway). What about you?

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