Online TV generating mainstream revenues - Internet TV services no longer perceived as marginal services

Published March 30th, 2008 - 06:36 GMT

New research from Informa Telecoms & Media shows that legitimate online TV and video services will generate revenues of US$7.9 billion in 2013, almost six times the 2007 figure. Advertising will consistently outperform a la carte and subscription-based download services in terms of revenue generation and North America will be the largest revenue-generating region, accounting for 63% of the 2013 global total.

The Informa report, called Online TV and Video: The over-the-top challenge to traditional TV, is published today and has found that online TV and video is successfully shaking off its perception as a marginal technology. Adam Thomas, author of the report, said “The Writers Guild strike brought much of Hollywood to a standstill for several months. The fact that revenues derived from Online TV and video were at the heart of the dispute indicate just how important this sector has become.”

Top 3 online video countries by revenues
2007 2013
US 1,032.6 4,722.6
UK 119.1 842.4
Japan 56.7 605.5
Source: Informa Telecoms & Media

While the Internet has long been considered a technology of the future for film and TV executives, it is now having a measurable impact on traditional sectors, indicating that its time has come. Digital media is changing the consumption of TV from an ‘on-the-couch’ to a ‘watch anywhere’ activity. Content has become interactive rather than passive, with the emergence of ‘citizen media’ concepts, such as blogs and social networks.

The biggest negative for broadcasters and content suppliers is the potential for online TV and video to hurt their existing business models. To date its harmful impact has been limited and there are examples of a beneficial affect, with CBS and NBC both reporting improved TV ratings for programmes showcased online. The report has found that content companies actively co-operating with the leading online TV and video services are best-placed to avoid any potentially harmful effects.

Online TV and Video: The over-the-top challenge to traditional TV is published by Informa Telecoms & Media, which produces several business information publications, including the New Media Markets, Converging Media and TV International research services.

Online TV and Video: The over-the-top challenge to traditional TV includes important illustrative statistics and reliable forecasts to 2013. Analysis of this pivotal market is worldwide, with its comprehensive forecasts broken down by region and for the leading 14 countries in detail.

About Informa Telecoms & Media
Informa Telecoms & Media is the leading provider of business intelligence and strategic services to the global telecoms and media markets. There are two key strands to Informa Telecom & Media’s business:

Providing business critical information
Informa Telecoms & Media produce and distribute business information products using innovative formats and powerful channels that meet the real business needs of their customers. Informa Telecom & Media’s newsletters, reports and consultancy guides the decisions of over 10,000 leading Decision makers

Creating communities
Informa Telecoms & Media works to actively foster and empower the communities it works with, assisting in debating and sharing best practice, solving problems and stimulating innovation. From magazines to online information portals, from large exhibitions to intimate networking lunches at focused conferences, Informa Telecoms & Media bring the industry together to enable progress within the dynamic telecoms and media markets.



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