Study: AMR PC/TV Internet Video Forecast Tops $5.8 Billion by 2011

Video Streaming, Increasingly Ad-Supported, is Booming; but Downloads Will Be Biggest Revenue Generator for Content Owners,
According to New Adams Media Research Study
By BusinessWire

CARMEL, Calif., BUSINESS WIRE -- By 2011, advertiser spending on Internet video streams to PCs and TVs will approach $1.7 billion, but movie and TV downloads will generate consumer spending of $4.1 billion, according to Adams Media Research's new strategic analysis, Video on the Internet: Ad-Supported Streaming and Download-to-Own.

"The Internet is going to revolutionize the business of video distribution," said AMR president Tom Adams, "But in all the excitement about product launches by Wal-Mart, Amazon and Apple, people are getting giddy about how fast it will happen. We felt it was time to develop a rational set of projections, analyzing the ad-supported and download-to-own markets for both movies and TV shows in light of what the industry has learned in the past three decades of video distribution shifts."

AMR's analysis points to a period of experimentation 2007-2009, during which the ad-supported model will predominate. But as significant numbers of homes connect their TVs to the Internet, consumer spending on downloaded movies and TV shows should expand rapidly and exceed ad spending substantially by 2011