Analysts See Big Gains in Online Video Content Delivery

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Research firms In-Stat and AccuStream iMedia Research have both issued reports that see big gains being made in the area of online video content delivery in coming years. The former expects worldwide revenue, on both a subscription and pay-per-download basis, of non-adult video content to reach US$2.6 billion by 2009. The latter sees a 109% increase in all online media revenue to reach $1.378 billion this year, with a $2 billion forecast in 2006.

In-Stat analyst Gerry Kaufhold said in a statement: "A thriving premium video market will develop over the Internet. Really Simple Syndication (RSS), audio podcasting, and upcoming video podcasting initiatives will certainly drive demand for lots more video on the Internet."

He added: "Appleis announcement that brings ABCis Desperate Housewives onto Appleis iTunes service marks a major turning point for video over the Internet."

Mr. Kaufhold sees companies earning revenues in multiple areas, including: developing stand-alone Web portals that sell subscriptions directly; partnering with a few key Web portals or search engines and sharing in the revenues; working with content aggregators to place video offerings into a pool of licensed content; providing Internet video content to pay-TV services ; repurposing content and re-routing it to partners in the mobile telephone industry.

His report, entitled "Personalization, Protection, Plus Video to Drive Premium Internet Subscription Services," sells for $3,495 through In-Statis Web site.

A Look at the Entire Online Media Market

AccuStreamis numbers include not only downloaded and subscription video but also music. The firm sees music as the major growth driver, with 2004is 397% jump in revenue followed up by a 154% gain in 2005. The overall online media market should see a 45% increase in 2006, the last year AccuStream looked at.

The company noted that subscription music services actually earned more money than downloaded music in 2003, but that reversed itself in 2004 and the latter increased its share of revenue this year, by an $832 million to $237 million advantage. AccuStream expects downloaded music to continue its gains next year.

The firmis research report is entitled "Subscription Streaming and Download Media: Revenue and Market Share by Service 2003 - 2006."

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