iSuppli, a market analyst in El Segundo, Calif., predicts the market for Internet TV service - professionally produced and distributed mass-market video that is monetized via advertising and distributed through broadband Internet connections - will rise to $5.79 billion in 2011, up from $422.7 million last year.
What does this mean for retailers? While the early market for Internet TV delivered to PCs has created growth, the boom will come as more CE devices like TVs, DVD players, game consoles, iPods and portable gadgets become web-connected, causing Internet TV to leap from computer screens into the living room, iSupply said in the report, “Internet TV: Revenue and Network Demands for Online News, Sports and Entertainment Video.” That translates to product sales opportunities, as well as possible service deals that are sold through retail in conjunction with the products.
“Internet video is dominated by news content currently as that is easily consumed in a ‘snack’ format on PC screens,” said Frank Dickson, principal analyst with iSuppli. “However, as Internet connections find their way to the living room TV and the digital transition drives an installed base of new set-top boxes, sports and entertainment content will populate Internet Protocol streams. The longer form content will drive bandwidth requirements and revenue, threatening the dominance of ‘walled gardens.’”