Broadband Video Market Exhibiting Growth

New research finds paying users for online video services has grown tremendously; study points to significant opportunities and inhibitors for future growth

The number of paying users of online video sites has grown significantly between 2006 and 2007, new research from Parks Associates indicates. “Broadband Video: A Market Update” finds that the number of broadband households paying for online video content now stands at nearly 12 million, up from a little more than three million in 2005-2006.

“We have seen widespread use of the Internet as an electronic delivery medium for video content over the past couple of years,” said Kurt Scherf, Parks Associates’ vice president and principal analyst. “Certainly, the availability of higher-quality content and a significant base of products like the iPod that allow for more seamless content-to-device linkages have provided a boost to the online video space.”

Although this recent consumer data points to more widespread use of the Internet as a video delivery network, Scherf indicates that the market has been characterized by as many failures as successes to date, and that it remains very much in flux. “With issues surrounding content rights, the role of incumbent video providers, business models, and questions about how consumer electronics manufacturers and other service providers will actually succeed, the space is very fluid at this point.”

“Broadband Video: A Market Update” provides an overview and analysis of the current and expected state of the online video market. It provides key takeaways of the market to date, offers an overview of the current status of video entertainment, and defines key categories and players. It is available as a free download from the Parks Associates’ Web site.

On October 3, 2007, Parks Associates will be hosting a one-day seminar titled “The Digital Lifestyle: Services, Applications, Content, and the Consumer”. The seminar, which will be held at the Hyatt Regency in Santa Clara, CA, will feature data, forecasts, and expert analysis on advanced online and connected entertainment technologies and services. Register now at the Parks Associates’ Web site.