Web-to-TV video content revenue to reach $17 billion by 2014

DUBLIN, IRELAND: Research and Markets has announced the addition of the "Web-to-TV Gaining Momentum in the US" report to its offering.

Consumer adoption of Web-to-TV is gaining momentum. Within five years there will be over 200 million web-enabled CE devices operating in the US. Movie rental and purchases are rapidly migrating to electronic sell-through. On-demand TV programming viewing is expanding at an exponential rate. But what is the best method of monetizing OTT video content?

This research report provides an update to In-Stats original 2009 Web-to-TV report. The report uses primary research to quantify current Web-to-TV consumer behavior. Total US web-enabled device shipments and installed base are forecasted.

Three alternative Web-to-TV models are identified in order to assess how OTT video content can be monetized. These include the current overlay model that favors device manufacturers and retailers. The bundled model reflects the emergence of video search engine platforms, such as Google TV, that span both online and pay TV programming. Finally, the integrated model envisions the delivery of third-party online TV via pay TV hybrid set-top boxes.

Five-year forecasts for Web-to-TV adoption are presented, segmented by household, revenue, and device type.

Executive summary
The growth of Web-to-TV video is happening faster than most people expected. By 2014 there will be 57 million US broadband households viewing full-length online video on the TV, says In-Stat. Revenue associated with this web-to-TV video content will grow from $2 billion to over $17 billion over a five-year period.

The over-the-top (OTT) video market represents a new distribution channel for digital entertainment. Content producers want to market premium video content directly to the consumer, says Keith Nissen, principal analyst, In-Stat. However, they have not yet decided the best way to monetize OTT video content and how to manage the OTT opportunity in context with their legacy distribution partners.

Some of the factors affecting this revenue growth include:

* The installed base of web-enabled consumer electronics video devices will grow from 70 million in 2009 to 237 million in 2014.
* The total number of US broadband households that own web-enabled CE video devices will nearly triple to 98 million by 2014.
* Within five years, over 11 million operator-provisioned hybrid STBs will be delivering online video content directly to the TV.

Recent In-Stat research Web-to TV Gaining Momentum in the US, uses primary research to quantify current web-to-TV consumer behavior, as well as forecasting total US web-enabled device shipments and installed bases. Three alternative web-to-TV models (Overlay, Bundled, and Integrated) are examined in order to assess how OTT video content may be monetized in the future. A five-year forecast for each alternative model is presented and compared.