07.15.2009 12:35 PM
Paid Video to Overtake Free Video on the Web in 2009
Boston and London—In a webinar presentation to leading global media and technology companies, Strategy Analytics' digital media analyst, Martin Olausson, predicted that the global paid online video segment will reach $3.8 billion in 2009, and exceed the free online video segment, which is expected to reach $3.5 billion this year. The total online video sector is predicted to grow 38 percent annually until 2012, with the paid video segment growing faster than the free video segment in the coming years.

While the free Web video segment—consisting of Web video ads and public broadcasting Web video—is expected to continue to show rapid growth at 37 percent compound annual growth rate in the next four years, the paid online video segment, including download-to-own, rental and subscription services, is expected to grow even faster, at 39 percent annually, during the same period according to this latest Strategy Analytics research.

“The economic downturn and diminishing advertising budgets have increased the focus on consumer paid content on the web in the last six months,” said Martin Olausson, Director of Digital Media Research at Strategy Analytics. “Increased consumer awareness and uptake of services, such as Netflix WatchNow and Xbox Live Video Store, in combination with new services such as the TV Everywhere initiative announced by Comcast and Time Warner Cable will also help drive the paid online video segment in the coming years.”

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Posted by: Terry Hanley
Mon, 07-20-2009 09:24 AM Report Comment
It's important to separate paid content revenue offered by NetFlix and cablers, from paid content offered by independent producers. In either case, premium content will attract paying customers, but smaller producers will need to offer more free content on the front-end. In any case, the golden goose for all producers and networks is paid subs + ad revenue.
Posted by: Terry Hanley
Thu, 07-16-2009 09:29 AM Report Comment
Remember when everything on the web was free! Well think again; paid subions to view content on the web is taking a dramatic turn says Strategy Analytics' digital media analyst, Martin Olausson, predicting that "paid online video segment will reach $3.8 billion in 2009." While the free online video segment continues to be quite a business at $3.5 billion this year, as one can surmise paid subions will out pace this by a good clip. Research indicates that through 2012 paid subions, which includes download-to-own, rental and subion services, will continue to outpace free video online at 39% compound annual growth, compared to free video at 37%. This trend indicates that the Cable Industry will continue to close ranks in offering exclusive video content online as evidenced by the Com/Time Warner "TV Everywhere" trial with 5,000 customers. As stated in earlier blogs, content will be king in the future and cable companies will be solidifying the exclusiveness of preferred content to increase revenues in an effort to keep consumers from "jumping ship".

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