AfterDawn: News

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...

• Year 2007 - $472 million
• Year 2008 - $1.2 billion
• Year 2009 - $2 billion
• Year 2010 - $3.1 billion
• Year 2011 - $4 billion

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.

Source:
DailyTech

Written by: James Delahunty @ 22 Feb 2007 17:02