The worldwide broadband video market is booming and set to explode over the next several years.
As consumers continue to clamor for more content over the Internet, growth is expected to reach $16 billion through the end of the decade, according to ABI Research.
Both pay and advertising-supported broadband video markets exceeded 100 percent growth in 2005 over the previous year, according to ABI, and as consumer demand increases, content owners’ demand for alternative outlets is expected to follow.
Video publishers ranging from small independent producers to major media companies continue to focus on building their businesses by distributing and monetizing their video programming through broadband channels.
Mike Wolf, The New York-based research firm’s principal analyst on broadband, digital home and media, said that recent deals, such as the one between Disney and ABC, have helped build momentum for an already strong market.
“Other announcements, such as NBC’s decision to push its flagship nightly news onlinethrough an ad-supported model, are sure signs that content companies are reexamining their traditional distribution channels to see where broadband video can expand their overall reach,” Wolf said in a statement.
Earlier this week AOLannounced it had expanded its video search engine capabilities with an agreement to feature RSS feeds from MTV Networks’ programming services.
That move again signaled the company had made video content a top priority for its ever-evolving business.
Last month, Internet TV startup Brightcoveannounced a video-content distribution partnership with AOL to deliver a greater range of open Internet TV services. They are expected to enable video publishers to build broadband businesses that reach consumers directly through the Internet.
And while content and demand increase, advertisers are pushing their presence in the market because sought-after demographic groups such as young adults are spending more time online, instead of watching TV, according to ABI.