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Online Video Begins to Become Mainstream
All Content is Delivered as Part of a “Media Bundle"
US Online Video Viewers
US Online Pay Services
The Subscription Bundle Appears to be the Near-Term Winner
Forecast for the Value of US Online Rentals and Purchases
US Revenue from Professional Content (Ad-Based)
World Market for Online Video
Related In-Stat Reports
List of Tables
Table 1. Reasons Respondents Do Not Rent and/or Purchase Online Video
Table 2. US Revenue and Annual ARPU for Purchased and/or Rented Online Video
Table 3. Total Worldwide Revenue for Online Video
List of Figures
Figure 1. Worldwide Revenues for Online Video
Figure 2. Types of Online Video Watched by Respondents
Figure 3. Respondents’ Preference When Buying Movies to Own
Figure 4. Respondents’ Habits for Purchasing or Renting Online Video
Figure 5. Average Number of Online Videos Respondents Purchased/Rented per Month
Figure 6. Penetration of Online Video Among US Broadband Users
Figure 7. Percentage of Online Video Consumption by Age Group
Figure 8. Breakout by Age of US Online Video Viewers
Figure 9. Consumer Types for Bundle Example
Figure 10. Online Video or Brick and Mortar Rentals
Figure 11. Bundling and Subscription Model
Figure 12. Hybrid Subscription Plan
Figure 13. Forecast for Percentage of Adults Who Rent and/or Purchase Online Video
Figure 14. US Revenue and Annual ARPU for Purchased and/or Rented Online Video
Figure 15. Revenue from Ad-Based Professional Online Video
Online video is a wildly growing industry. We have analyzed the market, leveraging a recent consumer survey along with several datasets to provide an in-depth discussion of the issues, and we analyzed the scenarios that will drive the business models forward.
Primarily, we provide a forecast for broadband penetration and growth in online video viewers. By 2012, for instance, forecasts that 90% of US households will have access to broadband, with 94% of these individuals watching online video—this is up from an estimated 77.8% of broadband users in 2008 watching online video.
Broadband is perhaps the greatest predictor of online video growth and expansion. This forecast, the foundation of which is based on primary research, shows the development and maturation of the online video market.
What is now seen as a predominantly younger pastime will spread to encompass a wider group of people, in part due to the aging of current online video viewers but also as a result of word of mouth, spread of services, growth of in-home networks, and support within the consumer electronic device markets.
By 2012, we anticipate the online video market to eclipse US$ 4.5 billion, growing from US$ 1.2 billion (CAGR of 39%) in 2007.