Apple, ABC offering marks major turning point

Video content services, despite stiff competition from other sources, will become a leading-edge portion of all premium subscription services offered via the internet, and the recent deal between Apple and ABC marks a major turning point for video over the internet, according to In-Stat. The research firm predicts that by 2009, non-adult video content delivered as subscription or pay-per-download over the internet will have a worldwide retail value of $2.6 billion. "The video desires of most consumers will continue to be served by free-to-air broadcast TV, and by pay-TV services like cable TV and satellite, but a thriving premium video market will develop over the internet. Really Simple Syndication (RSS), audio podcasting, and upcoming video podcasting initiatives will certainly drive demand for lots more video on the internet." said Gerry Kaufhold, In-Stat analyst.

The report found that companies providing video content will have multiple opportunities to earn revenues by developing stand-alone Web portals that sell subscriptions directly; partnering with a few key Web portals or search engines and sharing the revenues; working with content aggregators to place video offerings into a pool of licensed content; providing internet video content to pay-TV services; and repurposing content and re-routing it to partners in the mobile telephone industry.

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