09.07.2010 10:26 AM
Web-to-TV video revenue to see explosive growth

The number of U.S. households with broadband service that watch full-length online video on the TV will reach 57 million by 2014, according to a new report from researcher In-Stat.

The report, "Web-to-TV Gaining Momentum in the U.S.," forecasts revenue from the sale of Web-to-TV video content to grow from $2 billion to more than $17 billion by 2014, says In-Stat.

Factors impacting revenue growth include:

  • The installed base of Web-enabled consumer electronics video devices will grow from 70 million in 2009 to 237 million in 2014.
  • The number of U.S. broadband households that own Web-enabled consumer electronic devices will nearly triple to 98 million by 2014.
  • Within five years, more than 11 million operator-provisioned hybrid STBs will be delivering online video content directly to the TV.

According to In-Stat principal analyst Keith Nissen, content producers want to reach consumers directly with their premium video content. "However, they have not yet decided the best way to monetize OTT video content and how to manage the OTT opportunity in context with their legacy distribution partners," Nissen says.

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