New research from Informa Telecoms & Media shows that legitimate online TV and video services will generate revenues of US$6.3 billion in 2012, almost ten times the 2006 figure.
Informa says that advertising will consistently outperform a la carte and subscription-based download services in terms of revenue generation and North America will be the largest revenue-generating region, accounting for 65% of the 2012 global total.
Informa’s Online TV and Video: Beyond User-Generated Content report, has found that the trend towards online TV and video is symptomatic of wider cultural changes. A new ‘breed’ of consumers has emerged who find it difficult to align themselves with the passive model of traditional linear TV.
Simon Dyson, co-author of the report said: “The TV business has already acknowledged some of the changes and is pushing concepts such as on-demand and digital video recorders. The rise of online TV and video is another step that tips the balance of power towards the consumer.”
| Top five online TV & video countries by revenues (US$ million) |
| |
2006 |
2009 |
2012 |
| US |
538 |
2,010 |
3,941 |
| UK |
42 |
364 |
708 |
| Japan |
24 |
155 |
510 |
| Germany |
9 |
77 |
254 |
| France |
10 |
68 |
238 |
| Source: Informa Telecoms & Media |
Whilst the internet has long been considered a technology of the future for film and TV executives, it is now having a measurable impact on traditional sectors, indicating that its time has come.
Digital media is changing the consumption of TV from an ‘on-the-couch’ to a ‘watch anywhere’ activity. Content has become interactive rather than passive, with the emergence of ‘citizen media’ concepts, such as blogs and social networks.
According to Adam Thomas, media research manager at Informa: “These trends are now so pronounced, that the term ‘social revolution’ no longer seems too much of an exaggeration.
“With social change occurring on such a large scale, traditional media companies are being forced to change their behaviour and business models to adapt their offering to consumer demand. The challenge for the TV industry is to monetise this massive interest in online content.”
The biggest negative for broadcasters and content suppliers is the potential for online TV and video to hurt their existing business models. To date its harmful impact has been limited and there are examples of a beneficial affect, with CBS and NBC both reporting improved TV ratings for programmes showcased online.
The report has found that content companies actively co-operating with the leading online TV and video services, such as YouTube, Google Video and iTunes Video, are best-placed to avoid the internet’s potentially harmful effects.
A recent report from JupiterResearch found that 37% of broadband consumers are interested in having TV programming delivered to their PC (see 37% Of Broadband Consumers Interested In PC TV Programming).
Meanwhile a report from eMarketer said that there will be 157 million US Internet video users in 2010, up from 107.7 million this year (see US Internet Video Users To Reach 157 Million).
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