Online Video Sales Becomes Real Business in 2007 with 400% Growth

Global revenue from online video sales, rentals or subscriptions will total just $298 million this year, but will grow some 389% in 2007 to hit global sales of nearly $1.5 billion, according to a new report "The Video Store Goes Virtual: The Global Outlook for Online Video Sales" from technology research firm Strategy Analytics. 

The report says by 2010, global revenue from online video sales, rentals and subscriptions will surge to $5.9 billion, accounting for 8% of total home video industry revenues.

Along with broadband growth and consumer demand, online video sales  will also be driven  by a growing number of distributors and payment models. 

  • Players such as Wal-Mart, Time Warner, and NetFlix are expected to enter the market dominated by Apple's iTunes. 
  • By 2010, Strategy Analytics projects that rentals and subscription-based services will account for about 25% of annual online video sales to consumers.

Global Online Video Sales 2006-2010

 

2006

2007

2008

2009

2010

CAGR

Total Annual Online Video Revenues ($M)

298

1,459

3,005

4,483

5,911

205%

    Change %

 

389%

106%

49%

32%

 

Source: Strategy Analytics, Inc.

"2007 will be remembered as the year in which online sales of prerecorded video finally become a real business," comments the report's author, Martin Olausson, Senior Analyst from the Strategy Analytics Broadband Media & Communications service. "Just like with music, online delivery of video content is now emerging as a viable and increasingly important distribution channel for content owners."

The report forecasts global customer and revenue growth for online video sales, rentals and subscriptions through 2010, and includes individual forecasts for Asia Pacific (APAC), Central & Latin America (CALA), Europe, Middle East & Africa (EMEA) and North America. It also assesses consumer interest and willingness to pay for video online, and it profiles more than 20 companies selling video via the web today,  including ABC, Amazon, AOL, Apple, BitTorrent, British Telecom, Channel 4, CinemaNow, Deutsche Telekom, Glowria, Google, Guba, LOVEFiLM, Microsoft, MovieLink, Telecom Italia, Telefonica, Starz Entertainment, Viacom, Wal-Mart, the Walt Disney Co. and YouTube.

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