James Delahunty
22 Feb 2007 17:02
Adams Media Research has published a study that estimated in the year 2011, spending on video downloads will have reached $4 billion. Last year, video downloads generated about $111 million in revenue. "The Internet is going to revolutionize the distribution of video," said Tom Adams, Adams Media Research president. Giants like Wal-Mart, Apple and Amazon offer downloads of premium movie and TV content to consumers.
Bridging the gap between PCs and CE equipment throughout a household is believed to be vital to the success of the online video market. The AppleTV device is designed specifically to do this but will have a lot of competition when it launches. Microsoft's Xbox 360 can download high definition content from the Xbox Live Video Marketplace for viewing on a TV screen without any further steps.
This is how Adams Media Research sees the market growing in the next few years...
Advertising supported video is expected to be the most popular option available until consumers can get content from the Internet to their TV screens much easier.
- Year 2007 - $472 million
- Year 2008 - $1.2 billion
- Year 2009 - $2 billion
- Year 2010 - $3.1 billion
- Year 2011 - $4 billion