Online video services set for growth

The market for online subscription streaming video services is set to boom.In-Stat/MDR is predicting that revenues from such services will jump from US$991 million in 2003 to more than US$4.5 billion in 2007.

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By  Zoe Moleshead Published  September 23, 2003

The market for online subscription streaming video services is set to boom over the next five years, reports In-Stat/MDR. The research group is predicting that revenues from such services will jump from US$991 million in 2003 to more than US$4.5 billion in 2007.

Asia is expected to lead the demand for online streaming video services, accounting for US$1.2 billion of the revenues in 2007. The European market will also exhibit steady growth, says In-Stat.

“The world of online content is undergoing a three-way metamorphosis, creating opportunities for major media companies and large service providers to finally get their fingers into the Internet revenue pie,” says Gerry Kaufhold, principal analyst, In-Stat/MDR.

The factors driving uptake, according to In-Stat/MDR, are the increasing number of high speed connections, users improved willingness to pay for online content, as well as a greater number of online streaming services. Finally, the partnerships between ISPs and content providers will also help to encourage new users to invest in high value services.

In-Stat has also outlined a number of subscription services that it believes will draw in online users. The research group cites sports related events, including the 2006 football World Cup, film & TV related sites, general interest sites from portal providers and, finally, video communication services, as those most likely to draw viewers.

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