Report: Internet Video Revenues to Pass $7 Billion in 2010

Authored by Mark Hefflinger on December 7, 2006 - 3:40pm.

Dallas - Annual U.S. revenues from Internet video services, which include user-generated content as well as TV shows and movies, will exceed $7 billion by 2010, according to a report from market research firm Parks Associates.

The firm also forecasts that about 85% of revenue in 2007 will come from ads attached to user-generated videos, TV shows and news streams. By 2010, the report said services that let users rent and download TV shows and movies are expected to account for nearly 40% of total revenues.

"Major broadcasters, movie studios, retailers, and content aggregators are all experimenting with new ways to distribute video content online and attach advertising to their offerings," said Kurt Scherf, vice president and principal analyst, Parks Associates. "The early results are quite promising."

Parks Associates advises content creators to foster relationships with user-generated video sites and social networks, as it believes the active users of these portals will be the early buyers for Internet video content.

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