High Def Forum
Thank you for visiting. This is our website archive. Please visit our main website by clicking the logo above.

Online video revenue to top $12 billion by 2012

Lee Stewart
05-01-2009, 01:23 PM
Broader content, wider bandwidth will fuel growth, report says

By Danny King -- Video Business, 4/30/2009
APRIL 30 | Online video revenue will surge over the next three years, as consumers with higher Internet capacity access a wider range of film and television content in both standard-definition and high-definition over the Web, according to a report released last week. U.S. consumers will spend more than $9 billion on online video content in 2012, up from about $1.2 billion last year, content-delivery network Akamai said last week, citing an IDC study it commissioned. Meanwhile, advertisers will spend about $3.3 billion on online video in 2012, up from less than $1 billion last year, according to the study.

“Streaming online video is about to enter the media mainstream, offering alternative means of distributing video content to consumers of the traditional channels,” IDC said in the report.

Almost half of online video users watch television shows over the Web, while less than one in five watch movies, compared to about two-thirds who watch user-generated content, according to IDC.

With the number of online video users expected to grow by about a third to about 160 million between 2008 and 2012, use of HD video will grow exponentially, from 1.5% of the total in 2008, to 17% by 2012. Content distributors, including Internet-based YouTube and Hulu and such retailers as Amazon.com, Blockbuster and Netflix, are fueling such rapid growth rates by widening their inventory of digital titles, as more electronic components allow streamed videos to be played directly on television sets.

Google’s YouTube, which accounts for about half the videos viewed online and attracts about 60% of those who watch online videos, earlier this month said it would start offering free full-length movies and television shows on its site after reaching deals with content providers including Sony, Lionsgate and Starz. Meanwhile, Netflix, Amazon.com and Blockbuster have been augmenting their DVD sales and rentals by broadening their digital title inventory.

As total online video sales grow, revenue from high-definition online video will grow even faster. U.S. spending on HD online video will almost triple every year through 2012, when HD online video spending reaches about $2.2 billion, IDC said in the Akamai-commissioned study.

“HD video is emerging as a strategically important battlefield in the online video publishers’ war for consumer eyeballs, revenue and competitiveness,” IDC said in the report. The research firm estimated that 82% of online video users consider image sharpness and resolution either “important” or “very important.”

As the number of online video users grows, so will the amount of bandwidth available to them. The average bandwidth available to the typical Internet-using household has doubled within the past three years. More than 85 million households will have broadband access by 2012, up from about 70 million this year, according to IDC.

http://www.videobusiness.com/article/CA6655631.html

HD Goofnut
05-01-2009, 01:49 PM
And what was the total revenue for DVD and BD for 2008? Kosty (chart man) could you answer this question perhaps?

Kosty
05-01-2009, 09:44 PM
http://www.dvdinformation.com/News/press/CES2009yearEnd.htm

750M for Blu-ray
21.6 Billion for DVD

total $22.4 Billion

HD Goofnut
05-01-2009, 09:48 PM
http://www.dvdinformation.com/News/press/CES2009yearEnd.htm

750M for Blu-ray
21.6 Billion for DVD

total $22.4 Billion

And they are getting excited over 12 Billion 3 years from now? Ok wait for it...and wait for it......:lol::lol::lol::lol:

Kosty
05-01-2009, 10:31 PM
according to a report released last week. U.S. consumers will spend more than $9 billion on online video content in 2012, up from about $1.2 billion last year, content-delivery network Akamai said last week, citing an IDC study it commissioned Not only that , Akamai is hardly a non interested source as it has a vested interest in a positive projection.

Possible that if the report was less favorable, it would never have seen the light of day.

Kosty
05-01-2009, 10:32 PM
No one is disputing DD will grow, the issue is how much and what happens if low margin transaction online transactions that retailers gain nothing from affect higher margin packaged media sales that generate lots of profit per use.

DonnyDC
05-01-2009, 11:37 PM
Meh as internet speeds grow I see three things.
1. Increased ad supported viewing(ie. watching shows on nbc.com etc.)
2. Increased digital rentals
3. Increased Piracy

So if theyre expecting a big chunk of that 9 billion to be from download to own $20+ releases.. I think they'll be mistaken.

PFC5
05-04-2009, 02:10 AM
No mention of the bandwidth caps in that report and I think it will work like the ealrly cell phone buyers with that. Everyone probably knows someone who bought a car phone and started calling everyone they know saying "guess where i am calling you from". :D

The first bill ends up being a shocker and they stop using it for such calls because it cost them $300.00 to brag about where they are calling from . :eek:

I saw this with my clients early "car" phone bills, and it took a few years to make cell phones more affordable per minute of use, and they STILL are much more expensive than the average land line if you talk a lot. It is the convenience that make people go crazy over cell phones now IMO, and most hate the high prices.

If they increase the bandwidth (which I believe they will), will they also increase the caps ratio to that bandwidth increase, at the current monthly cost? If they do I can see this being possible, but if they do not increase the caps on a ratio similar I can see people trying it and then when they get the over the limit bill they will stop it and severely limit it just like those early car phone uses.

Bottom line IMO:

Caps will kill wide scale adoption of internet content that might have replaced physical discs.