Internet TV 'To Increase in Popularity'

By Jayne Davison
Published on 14 Aug 2008
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Internet TV 'To Increase in Popularity'

People will be watching broadcasts via their TV as usual - only, in the future, the service will come through a broadband connection.

Improvements in broadband technology will result in increasing numbers of people using premium internet video services, a tech analysis firm has predicted.

According to Parks Associates, the market could rise from its current level of £500 million a year to hit a high of £3 billion by 2013 - a six-fold increase. Increasing interest from broadcasters and major film studios in the web is predicted by the firm to be a "tipping point" for this new popularity.

The rise of internet video is distinct from the massive recent popularity of free "viral video" sites such as YouTube and Dailymotion - which offer content at a far lower quality than premium providers. Another difference is that web TV is often screened directly to TV sets, which the quality on offer from the free services makes impossible.

Kurt Scherf, vice president and principal analyst for Parks Associates, said: "Consumption of premium internet video content to date has been low. Services have been available only on less-than-optimal screens - PCs and portable multimedia players,"

"But new connected products that link to premium internet video services are emerging at a rapid pace, moving the internet video viewing experience into the living room. This shift will help grow revenues considerably."

Parks Associates conducted its research for the US market.

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