SCOTTSDALE, Ariz (Sep. 30, 2003) -- According to recent In-Stat/MDR research, the market for consumer online subscription video streaming services will grow from about $991 million during 2003, up to more than $4.5 billion during 2007. The high-tech market research firm expects that Asia will be the largest market in 2007, at about $1.2 billion and also predicts that solid growth will occur in Europe. "The world of online content is undergoing a three-way metamorphosis, creating opportunities for major media companies and large service providers to finally get their fingers into the Internet revenue pie," said Gerry Kaufhold, a principal analyst with In-Stat/MDR.
A recent In-Stat/MDR report identifies the following three phenomena that are enabling the online subscription video streaming revolution:[an error occurred while processing this directive]-- Lots of people are hooking up at high-speed -- more than 30
million households are already hooked up to high-speed
Internet connections, and In-Stat/MDR expects that more than
130 million households will be connected by the end of 2007.
All of these people are cruising at high speed and will be
getting used to having high-quality streaming video content
coming into their homes via the Internet.
-- People are finally starting to pay for premium content --
during the recent war with Iraq, RealNetworks RealOne
SuperPass service experienced an upward spike in
subscriptions, because families with loved ones overseas
needed to get all of the information they could, and premium
streaming video, from a variety of news sources, pulled in
viewers to the subscription-based service. Microsoft's MSN,
AOL, and Yahoo! will be launching premium online video
streaming subscription services later this year.
-- The high-speed connection providers are partnering with
"content" sources to create high-value services -- the
companies who provide the high-speed "pipes" are working
closely with content companies to provide branded premium
services that attract new customers and reduce churn among
existing subscribers. Companies such as Italy's FastWeb, MSN,
AOL, Yahoo! Broadband, and others, are providing brand name
services in partnership with DSL and cable modem services.
In-Stat/MDR predicts that four categories of subscription services will succeed:
-- Sports related services will attract subscribers around the
world, and during playoff events. FIFA's World Cup Soccer will
drive growth during 2006
-- Movie and TV related sites, such as CinemaNow, Movielink and
SoapCity(TM) will help the Hollywood studios develop their
online presence
-- General interest sites from major portal providers will
provide the lion's share of the market, in partnership with
sports and movie & TV sites, to drive traffic
-- Video communications services, such as Vibe Phone, Intratel,
Yahoo! Broadband in Japan, FastWeb in Italy, and others, will
create new video-over-IP services that succeed as follow-up
services to voice-over-IP products like today's VonAge,
Net2Phone, and others
The report, "Consumer Oriented Subscription Video Services Over IP Networks" (#IN030590MB), provides in-depth discussion, market analysis and forecasts, for the number of subscribers, by category, by region, by year, for four types of consumer-oriented subscription services delivered over the Internet, estimating the annual revenue per subscriber and providing the annual value, by category, by region, by year, for this important emerging market.
Source: In-Stat
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