Online video will become the dominant format for movies within three years, according to research by the British Internet Broadcasting Company (BiBC). 

According to the study, 85 per cent of respondents are prepared to buy movies or other visual media downloaded from the internet.

Consumers are also happy to watch downloaded content on a computer; 81 per cent favoured viewing downloaded material on a PC, compared to 83 per cent who would prefer to watch it on a TV.

Mobile content, however, is less popular. Only 21 per cent expressed an interest in downloading movies and other visual media to a mobile phone.

In terms of pricing, 41 per cent of respondents would be willing to pay between £2 and £5 to download a movie that could be kept permanently, but 24 per cent would prefer to pay nothing.

A quarter of respondents expressed a preference for buy-to-own movies, but 36 per cent would rather pay a monthly fee for unlimited viewing.

In the 18-24 age group a third favoured owning movies while a half would rather rent on a monthly basis. Over a quarter would only be willing to pay less than £10 a month for a service, while 40 per cent would be happy to pay more.

Two-thirds of people said that the concept of digital TV integrated with broadband would appeal to them. The 35-44 age category was particularly interested in this concept, appealing to 71 per cent.