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' report, "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.
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 sites 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 providers 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.