Saturday, December 09, 2006

Internet Video Revenues - $7 billion by 2010

Annual U.S. revenues from Internet video services – spanning user-generated content to television shows and movies – will exceed $7 billion by 2010, according to Parks Associates.

“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 have been quite promising.”

According to the report 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.

Read the Press Release

From the Analyst Blog:

Question: What's the revenue forecast for Internet video advertising?
Answer: Annual revenues for Internet video advertising in the U.S. market will grow threefold between 2006 and 2010 to approximately $4.4 billion in 2010. Most of these early advertising dollars will be generated from non-embedded display ads on different video streaming Websites. Later, as the inventory of high-quality embedded advertising increases, we’ll see that ad revenue grow to surpass the non-embedded ad dollars.

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