09.02.2004 11:13 AM
Video subscription services over IP networks to grow to $4.6 billion by 2008

In four years, the value of video subscription services delivered over the Internet worldwide will exceed $4.6 billion, a new study from In-Stat/MDR found.

This market is expanding to include more types of content, as well as extending its reach to Internet hot spots, wireless services, mobile phones and portable media centers, according to the "Consumer Video Subscription Services over IP Networks" report.

Sports video subscriptions are being used to leverage what networks already have on TV, and are enticing more consumers to sign up for enriched broadband services such as MSN Premium, said Gerry Kaufhold, a principal analyst with In-Stat/MDR.

Synacor and Earthlink are bundling sports video bargains along with greatly improved user convenience. Once consumers experience extended sports coverage via broadband, their appetite grows for more types of content, plus they want it delivered to their cell phones and new portable video devices, he added.

The report from In-Stat/MDR also revealed:

  • Major League Baseball and Microsoft are delivering breakthrough video services via MSN, and are preparing to launch portable video devices.
  • B Sky B has launched Sky Sports Broadband in the UK, partnering with AOL and Wanadoo to deliver enhanced sports programming via the Internet.
  • Movielink is adding new types of content and more flexible pricing.
  • CinemaNow has the largest library of movie titles, and is expanding in Asia and Europe with strong broadband partners.
  • DivX is bridging the gap from online downloads to DVD recorders.
  • Akimbo's innovative push service is moving forward.
  • TerraLycos Entertainment is growing the market in Europe and Latin America with movies, games and sports video content.
  • Portable media devices will eventually create new business models for pushing content to media PCs and then making it portable.
  • By 2008, North America and Asia will each be about one-third of the worldwide market, with Europe coming on strong.
  • The key to long-term success will be the ability to build a brand name that delivers a quality service to computers, TV sets and mobile devices.
The report contains independent analysis and forecasts of subscriber growth and annual revenues for four categories of consumer video subscription services, in four geographic regions of the world, from 2003-2008.

To read the report, visit www.instat.com/catalog/IN0401192MB.

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