Report: Online TV and Video Revenue to Top $6B by 20121 Feb, 2007 By: Erik Gruenwedel
Advertising-supported online television and video content is projected to generate $6.3 billion in revenue by 2012 — about 10 times the revenue from 2006, according to a new report from research firm Informa Telecoms & Media.
The London-based company said 65% of online TV and video revenue would be generated in North America, with ad-supported content outperforming revenue culled from subscription-based and ? la carte services.
The study would indicate the bridge between the Internet and traditional television is narrowing, underscored by the fact content is becoming more interactive than passive, said Simon Dyson, co-author of the report.
“The rise of online TV and video is another step that tips the balance of power towards the consumer,” said Dyson.
The report said while the TV industry and traditional media would have to continue adapting to an Internet-savvy consumer, cannibalization of TV-ad revenue and viewers had been limited thus far.