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Premium Internet Video Services Forecast

Despite some tough competition from other sources, video content services will become a leading-edge portion of all premium subscription services offered via the Internet, reports In-Stat. By 2009, non-adult video content delivered as subscription or pay-per-download over the Internet will have a worldwide retail value of $2.6 billion.

"The video desires of most consumers will continue to be served by free-to-air broadcast TV, and by pay TV services like Cable TV and Satellite," says Gerry Kaufhold, In-Stat analyst. "But 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. Apple's announcement that brings ABC's Desperate Housewives onto Apple's iTunes service marks a major turning point for video over the Internet."

In-Stat found the following:

Companies that provide video content will have multiple opportunities to earn revenues by:

- 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

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