Online Video A Billion Dollar Business In 2007
More than a third of the total US population viewed video on the Internet in 2006 according to eMarketer. Ages 3 and up viewed video on the Internet at least monthly and in three years more than half of all Americans will compose the online video audience.
“At this point, nearly 60% of all Internet users watch video regularly, and that share will increase to over 80% by the end of 2010,”said David Hallerman, eMarketer senior analyst and the author of the new Internet Video Audience report.
This year there were 108 million Internet video users and by 2010 the number will increase to 157 million.
How much growth potential is there in the video Internet market? According to “The Video Store Goes Virtual: The Global Outlook for Online Video Sales” online sales of TV programs, movies and other video will reach a billion dollars. While video sales through iTunes will make $298 million this year, Strategy Analytics projects video sales will climb in 2007 and reach $1.5 billion.
“2007 will be remembered as the year in which online sales of prerecorded video finally become a real business,” said Martin Olausson of Strategy Analytics. “Just like with music, online delivery of video content is now emerging as a viable and increasingly important distribution channel for content owners.”
By 2010 the report says that global revenues from online video sales will reach $5.9 billion and will account for 8 percent of total home video revenues.