London - While user-generated video content will represent 55% of all online video content consumed online in the U.S. by 2010, such content will account for just 15% of total revenues for online video, according to a report from market research firm Screen Digest.

User-generated video exploded in the U.S. during 2006, accounting for 47% of the total U.S. online video market. These videos generated some $200 million in ad revenue last year, a figure that is expected to grow to $900 million by 2010.

"No one has found a way to make real money from the huge audiences who participate on these sites," said Screen Digest senior analyst Arash Amel. "User generated online video will drive the majority of Internet content consumed in the future, but despite its huge popularity with web surfers worldwide, the major players have yet to find a way to generate significant revenues from it."

Screen Digest counts five business models currently being used for user-generated videos: advertising; content licensing; d-commerce (digital sales and rental of premium movie and TV content); subscriptions; and technology licensing.

While site owners and ad agencies trial different revenue models, the sites "risk losing their 'cool' factor as users are turned off by finding mainstream advertising on their personal videos," Screen Digest said.

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http://www.screendigest.com/press/releases/press_releases_15_1_2007/view.html