Broadband Video Continues Ascent

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 online
through 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 AOL
announced 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 Brightcove announced 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.

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