Online Video Apps Revenue Reach $494 Million

    January 21, 2009

Online video applications, platforms, advertising networks and related services generated $494 million in revenue in 2008, up 86 percent over 2007, according to a new report from AccuStream iMedia Research.

Value added service providers (VASP), video content management systems (CMS) and ad network revenues combined are forecast to increase 41 percent in 2009 and 38 percent in 2010.

Online Video Apps Revenue Reach $494 Million
Paul Palumbo

The top four VASPs are in-banner video advertising platforms including Eyewonder, Eyeblaster, Pointroll and DoubleClick, and as a category generated about $225 million in net revenue in 2008.

The remaining top ten VASPs had a combined revenue estimated at $194 million, and included Brightcove, Tremor Media, BBE, Worldnow, the Platform and Internet Broadcasting.

Video services including transcoding, custom player design and widgets are predicted to grow from 8.5 percent share in 2008 to 10.7 percent in 2010. Video indexing and metadata support is estimated to grow from 3.9 percent share in 2008 to 9.3 percent.

"VASPs are selling an ROI model in 2009, which plays well in a tight economy by focusing on ways to save clients money," said research director Paul A. Palumbo.

"Whether that’s more efficient allocation of marketing spend supporting strategic video publishing online or increasing paid media placement, VASPs are betting with their business models they can deliver better content performance."