Online TV revenues to increase tenfold

29 January 2007

New research from Informa Telecoms & Media shows that legitimate online TV and video services will generate revenues of US$6.3 billion in 2012, almost ten times the 2006 figure. Advertising will consistently outperform a la carte and subscription-based services in terms of revenue generation and North America will be the largest revenue-generating region, accounting for 65% of the 2012 global total.

Informa's Online TV and Video: Beyond User-Generated Content report, published today, has found that the trend towards online TV and video is symptomatic of wider cultural changes. A new 'breed' of consumers has emerged who find it difficult to align themselves with the passive model of traditional linear TV.

Simon Dyson, co-author of the report said "the TV business has already acknowledged some of the changes and is pushing concepts such as on-demand and digital video recorders. The rise of online TV and video is another step that tips the balance of power towards the consumer."

Top five online TV & video countries by revenues (US$ million)

2006 2009 2012
US 538 2,010 3,941
UK 42 364 708
Japan 24 155 510
Germany 9 77 254
France 10 68 238

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 its time has come. Digital media is changing the consumption of TV from '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.

According to Adam Thomas, Media Research Manager at Informa, "these trends are now so pronounced, that the term 'social revolution' no longer seems too much of an exaggeration. With social change occurring on such a large scale, traditional media companies are being forced to change their behaviour and business models to adapt their offering to consumer demand. The challenge for the TV industry is to monetise this massive interest in online content."

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.

Online TV and Video: Beyond User-Generated Content is published by Informa Telecoms & Media, which produces several business information publications, including the New Media Markets, Converging Media and TV International research services.

About Online TV and Video: Beyond User-Generated Content

Online TV and Video: Beyond User-Generated Content includes important illustrative statistics and reliable forecasts to 2012. Analysis of this pivotal market is worldwide, with its comprehensive forecasts broken down by region and for the leading 14 countries in detail. For more information or to order your copy please visit www.informatm.com/otv?src=itmpr

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 Telecoms & Media's research services, 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.

For Further Information, please contact:

Adam Thomas

Media Research Manager

Informa Telecoms & Media

adam.thomas@informa.com

+44 (0) 207 017 4274

www.informamedia.com/?src=itmpr

OR

Natasha Mensah

Media relations

Informa Telecoms & Media

natasha.mensah@informa.com

+44 (0) 207 017 5824

www.telecoms.com/?src=itmpr

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