Internet video market 'to soar to $5.8bn'

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The market for professionally made video streamed or downloaded via the internet will be worth just under $5.8bn by 2011, according to US market research group iSuppli. That's up from an estimated market value of $423m at the end of 2006.

ISuppli said the advertising-funded market was being fuelled by the rise of broadband which was turning the web "into the world's largest on-demand, interactive video library".

"The internet is also evolving into the most ubiquitous video distribution platform ever known. While the early market for internet TV delivered to PCs has created growth and excitement, the real disruptive opportunity is yet to come," said iSuppli.

"As more consumer electronic devices like TVs, DVD players, game consoles, iPods and portable gadgets become web-connected, internet TV will leap from computer screens into the consumer's primary media environment: the living room TV."

ISuppli said the internet video was currently dominated by news content. "However, as internet connections find their way to the living room TV and digital transitions drive an installed base of new set-top boxes, sports and entertainment content will populate internet IP streams. The longer form content will drive bandwidth requirements and revenue, threatening the dominance of 'walled gardens'," said iSuppli.

Lovelace Consulting  |  17.07.2007

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