iTunes video triggers "big bang"

Apple's iTunes video download service has started a major trend in online commerce, according to a new research report. While the push to online video had started well before the launch of the video iPod, the online video "big bang" seemed to start with Apple's video download service announcement and continued through the CES show this year. Competitive offerings include those from Starz and Google-- Starz launched its own premium movie subscription plan as Vongo, a $10 a month "all-you-can-eat" video download service. With Vongo, Starz is partnering with Microsoft to deliver the content, which will be available on Windows MCE PCs and Windows Portable Media Center devices.

Google also announced its iTunes competitor, Google Video Store, which uses Google's own video player and will offer content from partners such as CBS and the NBA for varying prices.

"As both content and platform providers enable an online video distribution chain, ABI Research believes that the premium online video market should grow 89% annually through 2010," says Mike Wolf, principal analyst of broadband and multimedia with ABI Research. "When companies such as Intel, with their new Viiv entertainment PC platform, and other large stakeholders such as Apple and Microsoft, focus their attention and resources, the combined impetus will force this market to expand, and consumers to open their wallets."

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