Online TV Revenue To Reach $6.3 Billion
Online TV and video are arguably still in their infancy, but are set to become a strong revenue earner on a global scale. In a new report titled “Online TV and Video: Beyond User-Generated Content” from Informa Telecoms & Media, online TV and video services stand to generate global revenues of $6.3 billion by 2012. That is close to 10 times the revenue generated in 2006.
In the US revenues are expected to increase from $538 million in 2006 to a whopping $4 billion in 2012. North America will account for 65 percent of the revenue generated worldwide in 2012.
The reason for the growth according to the report is a cultural shift among consumers who find the traditional TV not compatible with their lifestyles.
“The TV business has already acknowledged some of the changes and is pushing concepts such as on-demand and digital video recorders,” said Simon Dyson, co-author of the report. “The rise of online TV and video is another step that tips the balance of power towards the consumer.”
This is good news for the consumer and broadcasters as well as content providers who are realizing that they can adapt to the challenges online TV and video bring. Both CBS and NBC have reported improved TV ratings for programs featured online. The report found that broadcasters who are partnering with leading online TV and video services have the best chance of succeeding in digital media.
“These trends are now so pronounced, that the term ‘social revolution’ no longer seems too much of an exaggeration,” said Adam Thomas of Informa. “With social change occurring on such a large scale, traditional media companies are being forced to change their behavior and business models to adapt their offering to consumer demand.”