Consumers to Spend $6 Billion on Internet Video Services by 2013

Attributes growth to more connected gaming consoles and networked TVs.
image

08.13.2008 — Consumers in the United States will spend more than $6 billion on Internet video services by 2013, according to a study from Parks Associates.

Internet Video: Direct-to-Consumer Services” says direct-to-TV videos will account for 75 percent of the revenue.

The study is attributing the growth to more people owning connected gaming consoles, networked TVs and alternative video-on-demand settop boxes.

“Consumption of premium Internet video content to date has been low,” says Parks Associates VP and principal analyst Kurt Scherf.

“Services have been available only on less-than-optimal screens – PCs and portable multimedia players. But new connected products that link to premium Internet video services are emerging at a rapid pace, moving the Internet video viewing experience into the living room.

“This shift will help grow revenues considerably.”

ABI Research supports these claims, saying the number of internet video watchers will quadruple by 2013.

IMS Research says the number of households using IPTV will grow 52.2 percent annually through 2012.