The Internet TV gold rush is on, says Understanding & Solutions

September 25, 2007

An Internet TV “gold rush” is in progress as mainstream broadcasters, cable networks and TV content producers move their content online alongside a new raft of legitimate webcasters like Joost, Vudu and Babelgum, according to Understanding & Solutions.

A new report from the UK-based research organization projects worldwide ad revenue derived from Internet TV to be on track to reach $10 billion by 2011, or 18 percent of all Internet advertising in four years.

Globally, more than 20 billion videos are being streamed via the Web each month, according to John Bird, principal consultant with Understanding & Solutions. In the United States, active Internet video users stream an average of 55 videos per month, he added.

Online video is growing at about 100 percent each year, and going forward, television will be a primary driver, according to Understanding & Solutions. Major U.S. broadcast networks are already reporting tens of millions of streams monthly from their websites. However, to build sustainable revenues, the industry needs to engage with consumers to understand what works, and it needs to establish re-transmission rights and develop audience measurement techniques.

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