Report Sees Gains in Revenues from Internet-to-TV Content

Report Sees Gains in Revenues from Internet-to-TV Content
By Mansha Daswani
Published: September 30, 2009

Original Article: World

DALLAS: By 2014, revenues from the on-demand delivery of Internet content to the television set in the U.S. will reach $2.1 billion from $621 million this year, according to The Diffusion Group.

By then, the report continues, revenues from over-the-top video delivery to televisions sets will account for more than 25 percent of total annual VOD revenues. TDG’s senior partner and digital video expert, Colin Dixon, who authored the new study, says the industry is being driven by sales of web-enabled game consoles and Blu-ray players, as well as hybrid set-top boxes. Takeup of broadband-enabled TV units is also expected to be strong, setting the stage for a rapid uptake of Internet-to-TV video services, both pay-per-view and subscription-based.

“To put this into perspective, most industry estimates predict 2014 U.S. DVD rental revenue will exceed more than $8 billion,” noted Dixon. “By that time, OTT video rentals will top $2 billion, accounting for 25 percent of home video rentals. If that fails to warn companies like Blockbuster and Time Warner Cable as to the magnitude of this threat, they are asleep at the wheel.”

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