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The report from U.K. research firm Understanding and Solutions (www.uands.com) predicts that TV will be the major driver of online video growth, which they say is seeing 100% year-over-year growth.
Understanding says pay TV now accounts for half of annual consumer spending on entertainment, but expects that in the next decade, online video will account for a significant piece of the entertainment pie and shake up the industry. Understanding notes that TV networks that are streaming episodes online with ads have reported tens of millions of streams to date, but says to make it a sustainable business, they will have to reach a wider audience.
“Online TV will challenge the traditional broadcast industry by vying for content rights, the ability to offer on-demand linear broadcast and the generation of advertising revenues,” said Alison Casey, head of global content at Understanding & Solutions. “The competitive structure of the market will be under threat as new ‘Webcasters' compete with conventional broadcast channels for audiences and advertiser money. The national boundaries which govern broadcasting today will also be challenged by the global nature of the Internet, as has been the case with e-commerce.”
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Report: TV will drive online video growth - April 25, 2008
A new study out suggests that user-generated video site YouTube, along with social networking sites MySpace and Facebook, could become legitimate distributors of TV in the coming years, helping to grow online TV advertising revenues to $10 billion by 2011.The report from U.K. research firm Understanding and Solutions (www.uands.com) predicts that TV will be the major driver of online video growth, which they say is seeing 100% year-over-year growth.
Understanding says pay TV now accounts for half of annual consumer spending on entertainment, but expects that in the next decade, online video will account for a significant piece of the entertainment pie and shake up the industry. Understanding notes that TV networks that are streaming episodes online with ads have reported tens of millions of streams to date, but says to make it a sustainable business, they will have to reach a wider audience.
“Online TV will challenge the traditional broadcast industry by vying for content rights, the ability to offer on-demand linear broadcast and the generation of advertising revenues,” said Alison Casey, head of global content at Understanding & Solutions. “The competitive structure of the market will be under threat as new ‘Webcasters' compete with conventional broadcast channels for audiences and advertiser money. The national boundaries which govern broadcasting today will also be challenged by the global nature of the Internet, as has been the case with e-commerce.”
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