Consumer entertainment is in the midst of two radical transitions: the shift from analog to digital and the shift from physical media to Internet distribution . The shift to digital is almost complete, but the shift to Internet distribution is still far from complete. The first content to make both transitions was music. Although there is still significant physical distribution of music on CDs, Internet distribution through services such as Apple iTunes is quickly eclipsing CD sales. Video is now largely digital, but its transition to Internet distribution has been slower. There are technical reasons, such as file sizes of several gigabytes and download times of several hours, that contributed to the initial delays, but with today's broadband services and high-capacity hard drives of less and less expensive, the real obstacle now lies in economic models. . Until now, Internet video distribution has followed three basic models: a la carte pricing in which a fee is charged to rent or purchase a show, a la carte pricing in which a fee is charged to rent or buy a show, advertising-supported pricing in which the viewer "pays" for what they watch by watching advertisements inserted into the program. feed and subscription pricing whereby periodic fees are paid to access a library of content. This article examines all three and draws conclusions as to which of the three will ultimately win. Pay-per-view pricing was the first business model used for distributing video content over the Internet and still dominates today. In this model, consumers pay a fee for each title downloaded. The fee might be a few dollars for a show they "rent" and only have access to for a limited time, or ten dollars or more for a show they "own" and can watch indefinitely. Studios and content owners like this model because it's a familiar extension of the pay-per-view, video-on-demand, DVD sales and rental models they've enjoyed for years. Unfortunately, consumers are not very fond of this model, as evidenced by the relatively low purchase prices for all these forms of electronic distribution. I believe there are two reasons why this is true. First, none of these models offer the "value for money" that a DVD purchase does. When a consumer buys a DVD, they instantly get a show that they can listen to in their living room, bedroom, car, computer or portable DVD player. It's portable, compatible, and often comes with cool menus and extras. So far, most digital downloads offer only a fraction of that amount..