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Revenue Forecast for User-Generated Content

User-Generated Content (UGC), such as that found on YouTube and MySpace, will continue to grow significantly in popularity and generate increasing revenue over the next several years, reports In-Stat.

By 2010, the volume of downloads/views on these sites will surpass 65 billion, and revenues tied to UGC video are expected to exceed $850 million by 2010. Revenues are those directly linked to videos in the form of banner/skyscrapers, embedded video, Google Adsense, and/or branded pages/channels.

"Democratization of media affords users the opportunity to express their opinions, rate content, and vote for their favorite videos," says Michael Inouye, In-Stat analyst. "In addition, what may currently seem like ‘the Wild West' is actually an industry that has started to see idiosyncratic 'judiciary bodies' and 'rules of law' imposed by each player within this market."

In-Stat's study found the following:

- The size of downloads/views are estimated to eclipse 1.1 exabytes of data by 2010, with uploads growing to more than 9.1 petabytes.

- 23 percent of the dozens of UCG sites studied currently support mobile access, with others making announcements for this support in the near future.

- YouTube holds the highest market share for video, but MySpace has the most visitors.

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