Internet TV revenue to skyrocket, says iSuppli

The market for Internet TV service will rise to $5.79 billion in 2011, expanding by a factor of 13.7 from $422.7 million in 2006, according to an iSuppli forecast.

The forecast is part of the research firm’s new “Internet TV: Revenue and Network Demands for Online News, Sports and Entertainment Video” report.

iSuppli defines Internet TV as professionally produced and distributed mass-market video that is monetized via advertising and distributed through broadband Internet connections.

The Web is quickly growing into the world’s largest on-demand, interactive video library. The Internet also is evolving into the most ubiquitous video distribution platform ever known.

While the early market for Internet TV delivered to PCs has created growth and excitement, the real disruptive opportunity is yet to come. As more consumer electronic devices like TVs, DVD players, game consoles, iPods and portable gadgets become Web-connected, Internet TV will leap from computer screens into the consumer’s primary media environment: the living room TV.

Other iSuppli findings include:

  • Sports and entertainment will supplant news as the top ad supported revenue generators by 2009.
  • The bandwidth required for Internet TV will grow by more than 44 times from 2006 to 2011 to almost 7 million Tebibytes (TiBs).
  • Internet TV will be dominated by North America and Western Europe. Regions such as Latin America and Eastern Europe will not have significant Internet TV penetration through 2011.

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