Technology | Media | Telecommunications

Tuesday, August 12, 2008

Consumer Internet Video Growth Bonanza

U.S. consumers will spend over $6 billion for Internet video services by 2013, with direct-to-TV videos accounting for 75 percent of that revenue, according to Parks Associates latest market study.

Their new report finds that greater ownership of connected game consoles, networked TVs, and alternative video-on-demand set-top receivers is generating significant growth in user-paid revenues.

"Consumption of premium Internet video content to date has been low," said Kurt Scherf, Vice President, Principal Analyst, Parks Associates.

"Services have been available only on less-than-optimal screens -- PCs and portable multimedia players. But new connected products that link to premium Internet video services are emerging at a rapid pace, moving the Internet video viewing experience into the living room. This shift will help grow revenues considerably."

Scherf said the Internet video market is maturing as portals, aggregators, broadcasters, and other content creators and publishers are developing go-to-TV approaches and ad-supported premium video services.

Future areas to watch include ad-supported movie streams, new targeted advertising approaches, and Hollywood's efforts to offer more electronically distributed content through download-to-burn kiosks and other manufacturing-on-demand outlets.