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August 03, 2006

A new study by market research group In-Stat and reported in MediaDailyNews finds that the market for online video will increase by tenfold in the next four years. The big winners? Content aggregator companies:

As one of its foundational premises, the In-Stat report notes that "within the very near future," individuals will control what, when, and how they see all the programming of interest to them. Furthermore, In-Stat asserts that this consumer-controlled delivery will be dominated by major content aggregators like AOL, Google, Yahoo, MSN, and Apple--which are increasingly able to "blend professional video with their high-touch services that follow consumers from screen to screen," Kaufhold (Gerry Kaufhold, a principal analyst for Converging Markets and Technologies) says.

According to In-Stat, 12.8 percent of broadband-equipped households around the world are already viewing content via an online aggregator. And the raw numbers can only grow as broadband penetration jumps from about 194 million households in 2005 to 413 million worldwide by 2010.

broadcasters have to adopt two strategies in order to be competitive. One, we must unbundle our content to play in this space and, two, we must get into the aggregator business themselves, and I think this has to happen at the local level.

Funny the report doesn't mention youTube, the 800-pound gorilla of online video aggregators.


Originally from The Pomo Blog, remediated by yatta on Aug 3, 2006 at 02:35 PM