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Streaming Technology Will be Major Revenue Generator, Study Says

10 Nov, 2003 By: Holly J. Wagner

Streaming technology will protect the copyrights of movies and music that are distributed across the Internet, and could generate $34 billion in new revenue in the U.S. market by 2008, according to a new market research study from The Insight Research Corp.

The study, Streaming Media in Telecom Networks 2003-2008, defines streaming media as the transmission of digital audio and video files over an IP network, in real time or on-demand, while prohibiting users from storing the files locally.

Delivering music or video files across Internet networks and managing their digital rights will give telephone companies and other IP network operators the ability to compete against cable companies for entertainment and advertising revenue, while building demand for broadband access to the Internet.

“We expect carriers to generate near-term revenue by delivering rich content over existing IP networks,” said Robert Rosenberg, Insight Research president. “The total number of broadband users will more than double by 2008, representing a lucrative market for streaming applications. As data compression algorithms improve and fiber is pushed closer to the home, the next phase of the streaming media evolution will unfold.”

Insight analysts see the potential for streaming media applications to underpin a mass market that is expected to grow at a compounded annual rate of nearly 80 percent over the next five years.

The study examines the market drivers for streaming media technology, including licensing issues, the expected increase in the speed of broadband Internet access, mass-market demand and enterprise usage. This industry research report forecasts revenue for the U.S. market by network services, including digital rights management (DRM), encoding, content hosting and performance measurement; and by content services, including advertising, music on demand, Internet radio and video-on-demand.

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