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Report: Game Consoles to Drive Web-enabled Content on TV

16 Jun, 2009 By: Erik Gruenwedel

Video game consoles such as the Sony PlayStation 3 and Microsoft Xbox 360, according to a new report, will spearhead the nascent market for video content delivered to the television via the Internet.

In-Stat said more than 10.7 million consoles will be used as Web-to-TV mediation devices by 2013, citing the prevalence of Web-connected game consoles in U.S. households, compared to digital media adapters, cable set-top boxes, Blu-ray players and Internet-enabled HDTVs.

The Scottsdale, Ariz.-based research firm said revenue (advertising, subscription and VOD) from Web-to-TV streaming services would grow to $2.9 billion during the period.

The report found that separate in-home content delivery networks are emerging — one for broadcast media services (e.g., cable TV) and the other for Internet-based broadband services.

Within five years, the number of U.S. broadband households viewing Web-to-TV content will grow to 24 million. To date, 29% of 25-to-34 year olds with game consoles utilize the devices to watch streaming video from the Internet.

In-Stat said that over time, new and repurposed video content would be optimized for broadcast or Web-to-TV based on content type.

“Currently Web video is largely additive to traditional TV revenue streams,” said analyst Keith Nissen, in a statement. “However, ultimately Web video on the TV will force a complete restructuring of today’s video distribution ecosystem.”

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