Internet TV advertising could achieve revenues of up to $10 billion worldwide by 2011, according to a new industry report from Understanding & Solutions.
Understanding & Solutions adds that this equates to 18% of the internet advertising market for that year, forecast at $57 billion.
However, there is an internet TV ‘goldrush’ in progress, as mainstream broadcasters, cable networks and TV content producers move their content online alongside a new raft of legitimate ‘webcasters’ (internet Video and TV aggregators) like Joost, Vudu and Babelgum.
John Bird, principal consultant with Understanding & Solutions, said: “The level of penetration already achieved by internet video is mind-blowing.
“Globally, we estimate there are more than 20 billion videos being streamed across the web each and every month. In the US alone, active internet video users are streaming an average of 55 videos per month – and this is just the beginning.”
Online video, says Understanding & Solutions, is growing at around 200% each year and, going forward, television will be a primary driver.
Alison Casey, business director: content & services, Understanding & Solutions, said: “Internet TV will challenge the traditional broadcast industry through rights distribution, on demand content versus linear broadcast and the generation of advertising revenues.
“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.”
A recent report from iSuppli suggested that the market for IPTV video services will rise to $26.3 billion in 2011, up from $779.2 million in 2006 (see IPTV Video Revenue To Reach $26 Billion By 2011).
Meanwhile, Parks Associates forecast that the number of IPTV subscribers will reach nearly 60 million worldwide by year-end 2011, spurred by both aggressive and reactionary telco tactics (see 60 Million IPTV Subscribers Worldwide By 2011).
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