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Internet Video Revenues to Exceed $7 Billion in 2010

Advertising Revenues Spur Initial Market; Content Services to Show Significant Growth Beginning in 2008

Annual U.S. revenues from Internet video services — spanning user-generated content to television shows and movies — will exceed $7 billion by 2010, according to Parks Associates’ Internet Video: Direct-to-Consumer Services. The report also notes this growth will accompany an ongoing shift toward greater parity between the revenue sources. In 2007, approximately 85% of revenue will be from advertisements attached to user-generated content and television and news streams. By 2010, services for renting and downloading TV shows and movies will account for nearly 40% of total revenues.

“Major broadcasters, movie studios, retailers, and content aggregators are all experimenting with new ways to distribute video content online and attach advertising to their offerings,” said Kurt Scherf, vice president and principal analyst, Parks Associates. “The early results are quite promising.”

According to Internet Video: Direct-to-Consumer Services, online distribution has boosted viewership and advertising revenues for current primetime television offerings and serves a strong differentiator in an increasingly fragmented market. The report encourages content creators to capitalize further on this trend by working closely with Websites that specialize in user-generated video and social networking. The active users of these portals will be the early buyers for Internet video content.

Internet Video: Direct-to-Consumer Services identifies the early leaders in Internet video services and technologies and provides analysis and recommendations for content creators and owners, advertisers and advertising agencies, broadband service providers, Web and entertainment portal players, and technology enablers. The report includes forecasts for television download services; movie rental, purchase, and subscription services; and embedded and non-embedded advertising in Internet video and Internet video Websites. For more information about Internet Video: Direct-to-Consumer Services, contact Parks Associates at 972-490-1113 or sales@parksassociates.com or visit http://www.parksassociates.com.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are “digital” or provide connectivity within the home. The company’s expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

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Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, executive conferences, and custom-tailored client solutions. Parks Associates is also a reliable resource for industry, local, national and international press, providing data, analysis, and insight on all aspects of the “digital living” markets.

Parks Associates hosts several fall events and co-hosts CONNECTIONS and CONNECTIONS Europe (in partnership with the Consumer Electronics Association) each year. In addition, Parks Associates produces the publication Industry Insights two times per year in conjunction with the CONNECTIONS Conference series.

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