Parks Associates: Internet Video Revenues to Exceed $7 Billion by 2010
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 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.