Telecom well poised to benefit from $70 billion streaming market
Mar 27, 2008 12:25 PM, Carol Wilson
A new Insight Research study says IPTV, along with streaming video and audio, will generate $70 billion in revenue over the next six years, from both network-derived services and content-derived income. Telecom companies are well positioned to capture a substantial portion of that revenue, according to Robert Rosenberg, Insight president, if they can build business plans that are flexible enough to adjust to shifting revenue trends.
In fact, they may be better positioned to benefit than cable and broadcast companies, who have more entrenched business models to defend, Rosenberg said.
Consumers are clearly willing to pay for on-demand audio and video, Rosenberg said, which is why he forecast a compounded growth rate of 29% from $5.2 million in 2008 to $17.8 million in 2013. But the business models for revenue capture are still evolving, Rosenberg said. While streaming audio services, namely Apple’s iTunes, have succeeded on a subscription model, chances are that streaming video is more likely to evolve as an ad-supported model, the Insight report states.
The report lays out two separate potential revenue streams – network-derived revenue for providing the technologies required to deliver a video stream such as encoding, digital rights management, content hosting, delivery services and performance measurement; and content-derived revenues for the video content itself.
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