The worldwide value of consumer-oriented video subscription services delivered via the Internet will grow to more than $4.6 billion in 2008, according to In-Stat/MDR (http://www.instat.com). The high-tech market research firm reports that this market is expanding to include more types of content, as well as extending its reach to Internet hot spots, wireless services, mobile phones and portable media centers.

“Sports video subscriptions are being used to leverage what networks already have on TV, and are enticing more consumers to sign up for enriched broadband services such as MSN Premium,” said Gerry Kaufhold, a principal analyst with In-Stat/MDR. “Synacor and Earthlink are bundling sports video bargains along with greatly improved user convenience. Once consumers experience extended sports coverage via broadband, their appetite grows for more types of content, plus they want it delivered to their cell phones and new portable video devices.”

A recent report from In-Stat/MDR also reveals that:

  • Major League Baseball and Microsoft are delivering breakthrough video services via MSN, and preparing to launch portable video devices.
  • B-Sky-B has launched Sky Sports Broadband in the United Kingdom, partnering with AOL and Wanadoo to deliver enhanced sports programming via the Internet.
  • Movielink is adding new types of content and more flexible pricing.
  • CinemaNow has the largest library of movie titles, and is expanding in Asia and Europe with strong broadband partners.
  • DivX is bridging the gap from online downloads to DVD recorders.
  • Akimbo’s innovative push service is moving forward.
  • TerraLycos Entertainment is growing the market in Europe and Latin America with movies, games and sports video content.
  • Portable media devices will eventually create new business models for pushing content to media PCs, and then making it portable.
  • By 2008, North America and Asia will each be about one-third of the worldwide market, with Europe coming on strong.
  • The key to long-term success will be the ability to build a brand name that delivers a quality service to computers, TV sets, and mobile devices.

    • The report, “Consumer Video Subscription Services Over IP Networks”, contains independent analysis and forecasts of subscriber growth and annual revenues for categories of consumer video subscription services, in four geographic regions of the world, from 2003-2008. The report also includes analysis of products and strategies of major players.

    About In-Stat/MDR

    In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

    Filed under: PC Gaming

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