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Why the Aggregators will Trump Telco IPTV

Although online content aggregators are in the early experimentation stages of rolling out video services, they will have some dramatic revenue-generating opportunities in the next five years, reports In-Stat.

The worldwide market for online content services is expected to expand by a factor of 10, growing from about 13 million households during 2005 to more than 131 million households by 2010.

"AOL, Google, Yahoo!, MSN, Apple, major Broadcast TV networks, Pay-TV services and local TV stations are all working on ways to blend their video assets with personalized TV services," says Gerry Kaufhold, In-Stat analyst. "The future of television is slowly being defined online, where the big Internet portals are finding ways to blend professional video with their high-touch services that follow consumers from screen to screen during the course of a typical day."

In-Stat's study found the following:

- Worldwide broadband households will more than double between 2005 and 2010, growing from about 194 million in 2005 to more than 413 million by 2010.

- Of all broadband households today, 12.8 percent are already regularly viewing professional content via Online Content Aggregators (bypass of telco IPTV model).

- Traditional broadcast TV networks are finally figuring out that they need to capitalize on "all this personalization stuff" or they will have deep trouble ahead.

- The Pay-TV services have realized that personalization is the trend for the future, and they won't be left behind while TV keeps expanding onto the Internet.

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