Web-to-TV Video Content Revenue Will Reach $17 Billion by 2014

Tuesday, August 17th, 2010 
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The growth of Web-to-TV video is happening faster than most people expected. By 2014, there will be 57 million US broadband households viewing full-length online video on the TV, says In-Stat. Revenue associated with this web-to-TV video content will grow from $2 billion to over $17 billion over a five-year period.

“The over-the-top (OTT) video market represents a new distribution channel for digital entertainment. Content producers want to market premium video content directly to the consumer,” says Keith Nissen, Principal Analyst, In-Stat. “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 US broadband households that own web-enabled CE video devices will nearly triple to 98 million by 2014.
  • Within five years, over 11 million operator-provisioned hybrid STBs will be delivering online video content directly to the TV.

Recent In-Stat research “Web-to-TV Gaining Momentum in the US” (#IN1004655CM), uses primary research to quantify current web-to-TV consumer behavior, as well as forecasting total US web-enabled device shipments and installed bases. Three alternative web-to-TV models (Overlay, Bundled, and Integrated) are examined in order to assess how OTT video content may be monetized in the future. A five-year forecast for each alternative model is presented and compared.

For a free sample of the report and more information contact Elaine Potter, [email protected]; (480) 483-4441