GROWTH IN WEB-TO-TV video is happening faster than originally anticipated, and by 2014, In-Stat predicts that there will be 57 million U.S. broadband households viewing full-length on-line video on the TV.
In addition, revenue associated with this web-to-TV video content will grow from $2 billion to over $17 billion over a five-year period, according to the research report Web-to-TV Gaining Momentum in the US.
“The over-the-top (OTT) video market represents a new distribution channel for digital entertainment”, said principal analyst Keith Nissen. “Content producers want to market premium video content directly to the consumer, however, they have not yet decided the best way to monetize OTT video content and how to manage the OTT opportunity in context with their legacy distribution partners.”
Some of the factors affecting this revenue growth include:
– The installed base of web-enabled consumer electronics video devices will grow from 70 million in 2009 to 237 million in 2014;
– The total number of U.S. broadband households that own web-enabled CE video devices will nearly triple to 98 million by 2014; and
– Within five years, over 11 million operator-provisioned hybrid set top boxes will be delivering on-line video content directly to the TV.
