Technology | Media | Telecommunications

Saturday, May 17, 2008

Chinese Consumer Video Growing Like U.S.

With significant growth in the Chinese market, the forecasts for User-Generated Video (UGV) use and revenue have shifted upward since last year, according to the latest market study by In-Stat.

And with expectations of higher quality content -- like HD video -- and increasing file size maximums, the demands on bandwidth will likely continue to grow at a faster rate than the number of videos served, the high-tech market research firm says.

"User-generated video (UGV) and the video sharing sites that exemplify this form of content have spread across the globe," says Michael Inouye, In-Stat analyst.

"China is a prime example of UGV's global reach and appeal, capturing a significant portion of the world market, making it second only to the U.S. In general, viewing of online video has increased in the U.S. in the past year, although participation is still stratified by age."

I believe that the growing use of handheld high-quality video camcorders, easy-to-use video editing software and free online storage and distribution services, will continue to drive the shift of video advertising online -- as consumers spend less time watching traditional TV.

The implications will dramatically disrupt the current status quo for legacy TV broadcasters, and in particular the legacy global advertising industry that has demonstrated resistance to adapt.

In-Stat's market study found the following:

- Total worldwide UGV revenue is expected to eclipse $1.19 billion by 2012.

- 160 billion UGV served videos are forecasted for 2012.

- Individuals who use mobile phones to participate in online video sites are most likely to contribute to the market (both financially and in terms of content).