U.S. streaming media set to boom

Posted by Erina Lin on March 31, 2008 at 11:12 PM

Streaming content in U.S. will bring in about $70 billion revenues by 2013, according to Insight Research’s forecast.

This includes revenues generated from the transmission of digital audio and video files, either via the Internet, an IPTV network, or a mobile phone. The files can be streamed in real time or on-demand, but they cannot be stored.

Over the next five years, revenues will increase at a compound annual growth rate of 29 percent. The main drivers to the growth includes on-demand audio and video content, as well as their associated advertising revenues, eMarketer reported.

"The outlook for streaming media has never been brighter. Questions surrounding consumers’ willingness to pay for content have been dispelled by the popularity of satellite radio and iTunes," said Robert Rosenberg, president at Insight Research.

"The forecasts that we present are conservative, and in line with current performance. If, however, per-stream costs drop faster than anticipated, we have quicker acceptance of IPTV, or improvements in 3G delivery take place faster than expected, it could blow the doors off of our forecasts, propelling this industry into explosive growth,” he added, eMarketer reported.