Boston - Online sales of TV shows, movies and other pre-recorded video programming are expected to grow from $298 million this year to reach $1.5 billion in 2007, according to a report from market research firm Strategy Analytics.

By 2010, the firm predicts, global revenue from online video sales, rentals and subscriptions will surge to $5.9 billion, representing 8% of total home video revenues.

"2007 will be remembered as the year in which online sales of prerecorded video finally become a real business," said Strategy Analytics senior analyst Martin Olausson. "Just like with music, online delivery of video content is now emerging as a viable and increasingly important distribution channel for content owners."

The firm said major players including Wal-Mart, Time Warner and Netflix are expected to launch services in the near future to compete with Apple's iTunes Store in the online video market. By 2010, rentals and subscription-based services are expected to account for about one-quarter of annual online video sales.

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