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U.S. on-demand internet content revenues to grow 260 percent in five years

U.S. consumer spending for online entertainment, including on-demand gaming, music and video services, will grow by 260 percent in the next five years, according to “Digital Lifestyles: 2006 Outlook,” a new study from Parks Associates.

Driven by broadband usage and innovations in digital entertainment platforms and content services, revenues will grow from $2.4 billion in 2006 to nearly $9 billion in 2010, the report said.

The online video market, including such providers as Movielink, CinemaNow, Apple iTunes and Akimbo Systems, will be active in 2006, as PC and consumer electronics manufacturers seek to expand their influence by offering more integrated networked solutions to end users, said Kurt Scherf, vice president and principal analyst, Parks Associates.

The report predicted the number of worldwide consumer broadband subscribers will grow from 184 million in 2005 to more than 360 million in 2010, while the number of households worldwide using data networking equipment will grow from approximately 82 million in 2005 to more than 135 million in 2010.

The researchers predicted that worldwide subscribers to IP multichannel video services (IPTV) will grow from approximately 5 million in 2005 to nearly 70 million in 2010.

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