Analysts expect demand for video downloads will pick up by the introduction of new hardware devices like the Apple TV.
Annual consumer spending on Internet downloads of movies and TV shows will top $4 billion in 2011, up from just $111 million last year, according to a study released Wednesday by Adams Media Research.
"The Internet is going to revolutionize the distribution of video," says Adams Media Research President Tom Adams.
The growth will be fueled by the introduction of hardware devices such as Apple TV, a $299 box that converts videos downloaded from the Internet into signals that can be played on high-definition television sets.
Apple is selling the boxes on its Web site and says they will be shipped later this month.