SOURCE: The Diffusion Group

The Diffusion Group

September 29, 2009 13:16 ET

Approximately 25% of North American Home Video Rentals to Go Over-the-Top Video by 2014

Internet-to-TV Video Services to Capture Sizable Slice of Home Video Rental Market

DALLAS, TX--(Marketwire - September 29, 2009) - According to the The Diffusion Group, revenue from the on-demand delivery of Internet video to the TV will grow from $621 million in 2009 to $2.1 billion by 2014, accounting for more than 25% of total annual video-on-demand revenue. This finding is discussed at length in TDG's latest digital media analysis, "Broadband-Enabled TV - Rise of the OTT Provider," authored by TDG senior partner and digital video expert, Colin Dixon.

Fueling this trend, notes Dixon, is the rapid diffusion of ancillary web-enabled platforms such as game consoles, Blu-ray players, and hybrid set-top boxes. While TVs with embedded broadband support are only now arriving in retail channels, the widespread and growing penetration of secondary platforms will set the stage for a rapid uptake of Internet-to-TV video services, both pay-per-view and subscription-based.

"To put this into perspective, most industry estimates predict 2014 U.S. DVD rental revenue will exceed more than $8 billion," notes Mr. Dixon. "By that time, OTT video rentals will top $2 billion, accounting for 25% of home video rentals. If that fails to warn companies like Blockbuster and Time Warner Cable as to the magnitude of this threat, they are asleep at the wheel."

TDG's latest digital media analysis, "Broadband-Enabled TV - Rise of the OTT Provider" is the first of a two-part report series by Colin Dixon on the emerging opportunities associated with Over-the-Top (OTT) video services. The initial report analyzes and forecasts global demand for Over-the-Top services, and revenue associated with both pay-per-view and subscription video services, as well as the diffusion of broadband-enabled TVs. The second report in the series will provide forecasts for a variety of web-enabled video platforms including game consoles, Blu-ray players, hybrid set-top boxes, Internet extenders, and others.

The report is now available for purchase at www.tdgresearch.com or by contacting TDG directly at 469-287-8050.

About TDG:

TDG is the leading voice in the digital video ecosystem providing market planning and research services to keep our clients In Front of the Curve™. Since 2004, TDG has helped more than 250 technology leaders, media companies, and service providers to master the quantum shifts impacting how consumers access, navigate, distribute, and consume broadband media -- whenever and wherever they may be.

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