Skip to main content

Internet Video Services Primed for Growth

According to a new forecast from IDC, Internet video services will generate over $1.7 billion in revenues by 2010, an increase of more than $1.5 billion from 2005 totals. Much of this growth will be fueled by a surge in the amount of premium content made available online. However, IDC cautioned that the market's potential could be dampened by key technical and legal hurdles.

The market for Internet video services began its dramatic acceleration in 2005 as content owners, once unwilling to offer their products online, started to experiment with digital distribution as a way to complement and enhance their existing business models and to stem illegal P2P file sharing and piracy.

In particular, the television networks' decision to offer episodes from new shows as well as old sparked significant interest in Internet video. Television content, which is available in ample amounts and is ideally suited for the PC, is expected to be an integral component to revenue growth throughout the forecast period.

Key drivers for the adoption of Internet video include the expansion of premium content offerings online and the emergence of home networking solutions that allow consumers to more easily view Internet content on their televisions. As services become increasingly common, content owners will leverage Internet video to complement their existing revenue streams and to generate additional revenue from archived content and new content created specifically for the service.

IDC expects content owners will migrate toward three basic service types. Advertising-based services will remain the dominant type of Internet video service, although its share of total market revenue will decline as a la carte services, buoyed by consumer familiarity with iTunes, grow dramatically over the next 2-3 years. Subscription-based services will experience steady growth throughout the forecast period, enhanced somewhat by the emergence of home networking solutions that make subscriptions more appealing to consumers.

In order to sustain the momentum gathered in 2005 and maximize opportunities for success, content owners and service providers will need to overcome several important problems, including licensing issues, inadequate video search, competitive challenges, and the issue of how to move content beyond the PC. IDC believes that companies involved from the creation to distribution of content will have to partner with others across the value chain to create appealing, flexible services that will evolve into viable businesses.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

How GenAI is Transforming the Role of CIO

The introduction of Artificial intelligence (AI), and the emergence of Generative AI  (GenAI), are now resulting in two key focus areas for Chief Information Officers (CIOs) and their IT leadership team. "GenAI is not just a technology or just a business trend. It is a profound shift in how humans and machines interact," said Mary Mesaglio, VP Analyst at Gartner . "We are moving from what machines can do for us to what machines can be for us." AI platforms are evolving rapidly from being our tools to becoming our teammates. Gartner predicts that by 2025, GenAI will be a workforce partner for 90 percent of companies worldwide. CIO Leadership Market Development CIOs have a major role in how they shape AI and how AI shapes us. According to recent Gartner surveys of CEOs, enterprise CIOs are their number one choice to unlock the value of GenAI tools. In fact, CIOs and IT executives will prioritize two areas to unleash the possibility of AI over the next 12-24 months – t