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Summary:

The latest report to try to nail down the future benefits of online TV projects downloads of TV shows and films will grow 10-fold in the nex…

The latest report to try to nail down the future benefits of online TV projects downloads of TV shows and films will grow 10-fold in the next five years, amounting to $6.3 billion worldwide in revenues by 2012. The report from British market researcher Informa views growing broadband penetration and the trend towards legal peer-to-peer services as the main drivers advancing greater acceptance of IPTV. Despite the incredibly upbeat view of online TV profitability, Informa says there is one major obstacle: the persistence of internet piracy. Informa

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  1. Why does this article quote directly from the Financial Times but not cite it?

  2. whoindatgarden Tuesday, January 30, 2007

    I follow this space of Video Services pretty closely.
    The online Video downloads sector is heavily dependent on a bunch of technologies to be in play and be able to provide the ease of use that is necessary for the large majority of the society.
    So far Technologies that have to be in place for an Online Video Delivery model in place have been either delayed or have not delivered on the promises they made.
    High bandwidth, Media Center PC/Mac have not intuitive in nature thus not been adopted widely, another quagmire is DRM has only created bad mindsets that make people shun anything that requires multiple steps to be able to view content they have paid for.
    Inherent barriers that have been placed by various entities and the strong desire to create barriers seems to be the modus operandi of the Content Owners, the Distributors and the Broadband connection owners, while the people who actually pay for all of it are left out of the equation to a large degree.
    Projecting from the current revenues generated by companies like Itunes, Movielink, Cinemanow, Amazon Unbox and others and what was the total viewer-ship of such services in the last two quarters does not lend itself to the numbers this research note claims to make. Maybe they have a different method in place and if so one would like to know what the methodology has been used to arrive at such numbers. Talk is cheap and I doubt anyone will hold the people/companies projecting these numbers accountable in anyway.

  3. Wow!
    Whoindat tough words. Is the glass half empty even? Content Owner MO "create barriers"? Did you know that ~1 out of every 3 bits on the internet are already moving movies?

    You may be right about DRM as most everyone is fuddled. Not us. We beleive that if "one" wants to steal, they will regardless of the precautions set in place. The greater barrier to theft is providing the content at a reasonable cost. Given the opportunity to purchase leagally, many will.

    That being said as an entertainment guy, Streaming or VOD is a much better immediately gratifying experience. My call on the report release is #s could be in ballpark,…..but the actual usage will be higher than the numbers indicate.

  4. I agree with EBE. Some of the other studies i've seen have really inflated the numbers (probably so the press will cover it). But these numbers seem pretty realistic to me.

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