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U.S. On-Demand Internet Content Revenue

U.S. consumer spending for online entertainment, including on-demand gaming, music, and video services, will grow by 260 percent in the next five years, according to a new study from Parks Associates. Driven by broadband usage and innovations in digital entertainment platforms and content services, revenues will grow from $2.4 billion in 2006 to nearly $9 billion in 2010.

"This year will be a watershed for delivering to consumers an array of new entertainment experiences," said Kurt Scherf, vice president and principal analyst, Parks Associates. "Thanks to broadband proliferation and growing cooperation between content producers and other members of the digital entertainment value chain, we'll see significant product and service announcements throughout 2006."

Scherf indicated that the online video market - including such providers as Movielink, CinemaNow, Apple iTunes�, and Akimbo Systems - will be active in 2006, as PC and consumer electronics manufacturers seek to expand their influence by offering more integrated networked solutions to end users.

Key findings of the Parks study:

-The number of worldwide consumer broadband subscribers will grow from 184 million in 2005 to more than 360 million in 2010;

-The number of households worldwide using data networking equipment will grow from approximately 82 million in 2005 to more than 135 million in 2010; and

-Worldwide subscribers to IP multichannel video services (IPTV) will grow from approximately five million in 2005 to nearly 70 million in 2010.

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