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Internet Video Revenues to exceed US$7 Billion in 2010: Advertising revenues spur initial market; content services to show significant growth beginnin


December 7, 2006

December 8, 2006 The Internet Juggernaut is now in full stride. What began just a dozen years ago as a fledgling commercial medium is now well into its second billion users – first it was text, then text and pictures then it fueled the digital music revolution and now it is getting set to do the same for video. Annual U.S. revenues from Internet video services – spanning user-generated content to television shows and movies – will exceed US$7 billion by 2010, according to Parks Associates’ Internet Video: Direct-to-Consumer Services. The report also notes this growth will accompany an ongoing shift toward greater parity between the revenue sources. In 2007, approximately 85% of revenue will be from advertisements attached to user-generated content and television and news streams. By 2010, services for renting and downloading TV shows and movies will account for nearly 40% of total revenues.

“Major broadcasters, movie studios, retailers, and content aggregators are all experimenting with new ways to distribute video content online and attach advertising to their offerings,” said Kurt Scherf, vice president and principal analyst, Parks Associates. “The early results are quite promising.”

According to Internet Video: Direct-to-Consumer Services, online distribution has boosted viewership and advertising revenues for current primetime television offerings and serves a strong differentiator in an increasingly fragmented market. The report encourages content creators to capitalize further on this trend by working closely with Websites that specialize in user-generated video and social networking. The active users of these portals will be the early buyers for Internet video content.

Internet Video: Direct-to-Consumer Services identifies the early leaders in Internet video services and technologies and provides analysis and recommendations for content creators and owners, advertisers and advertising agencies, broadband service providers, Web and entertainment portal players, and technology enablers. The report includes forecasts for television download services; movie rental, purchase, and subscription services; and embedded and non-embedded advertising in Internet video and Internet video Websites. For more information about Internet Video: Direct-to-Consumer Services,

About the Author
Mike Hanlon Mike grew up thinking he would become a mathematician, accidentally started motorcycle racing, got a job writing road tests for a motorcycle magazine while at university, and became a writer. As a travelling photojournalist during his early career, his work was published in a dozen languages across 20+ countries. He went on to edit or manage over 50 print publications, with target audiences ranging from pensioners to plumbers, many different sports, many car and motorcycle magazines, with many more in the fields of communication - narrow subject magazines on topics such as advertising, marketing, visual communications, design, presentation and direct marketing. Then came the internet and Mike managed internet projects for Australia's largest multimedia company, Telstra.com.au (Australia's largest Telco), Seek.com.au (Australia's largest employment site), top100.com.au, hitwise.com, and a dozen other internet start-ups before founding Gizmag in 2002. Now he writes and thinks. All articles by Mike Hanlon
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