Premium Video to Reach $277 Billion in 2010

• Posted: Monday, March 12, 2007
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• Author: pradhana
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• Filed under: IPTV, Mobile Video Market, Online Video

Revenues from pay TV, mobile video, DVD, broadband video and theater/box office receipts will reach $277 billion by 2010, up from less than $200 billion in 2006, according to iSuppli Corporation.

If advertising revenues are added to premium video sales, the total market amounted to approximately $370 billion in 2006.

Pay-TV services, especially from Internet protocol television (IPTV), will drive much of the growth. IPTV is the fastest-expanding segment of the pay-TV market, with revenues expected to increase to $23.5 billion in 2010, rising at a compound annual growth rate (CAGR) of 103% from $681 million in 2005.

DVD sales are actually expected to decline by as much as 20% during the next four years. Hollywood studios are running out of new content to sell, even as half of their revenues now come from DVDs. Consumers are also becoming price-sensitive, and are increasingly reluctant to spend $20 to buy DVDs outright when renting is an option. [eMarketer]

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