Streaming Movies, TV, and Music Industry Will Generate $78 Billion Over Six Years

BOONTON, N.J. — Streaming video and music distributed across the Internet, an IP TV network, or a mobile handset will generate more than $78 billion in network-derived and content-derived revenue into the US markets over the next six years, according to a new market research study from The Insight Research Corporation. Streaming media refers to the transmission of digital audio and video files over an IP network or wireless network in real time or on-demand, while prohibiting users from storing the files locally.

Insight’s market analysis study, Streaming Media, IPTV, and Broadband Transport: Telecommunications Carriers and Entertainment Services 2009-2014, describes the technology and market forces underpinning the network-derived revenues generated from distributing streamed content across the public Internet, content distribution networks, cellular networks, or telco IP networks. The study also estimates the revenue from the various types of content-derived revenues, along with associated advertising revenue. The streaming market is expected to grow at a compound annual rate of 27 percent over the next five years, driven by on-demand audio, on-demand video, and the accompanying advertising revenue.

“Over the past seven years as we’ve tracked the developments in streaming it has evolved from an esoteric niche to a mainstream market,” says Robert Rosenberg, Insight Research president. “What we predicted way back when is coming to fruition. The advertising revenue that long supported traditional TV is gravitating to this new medium, putting downward pressure on traditional TV distribution schemes,” Rosenberg concluded.

Insight’s report examines the following market drivers: licensing issues, broadband Internet access, mass-market demand, and enterprise usage. Forecasts include revenues for the US market by network services, including digital rights management (DRM), encoding, and performance measurement; and by content services, including advertising, music on-demand, Internet radio and video on-demand.