The study by In-Stat/MDR, a high-tech market research firm based in Scottsdale, Ariz., forecasts all video subscription content, including adult.
Research indicates that by 2008, North America and Asia will each be about one-third of the worldwide market, with Europe coming on strong.
One of the key components of video subscription services has been the technology of broadband.
“Without broadband, we couldn’t deliver the goods properly,” VS Media President Gregory L. Clayman told XBiz. VS Media operates the Flirt4Free enterprise.
The In-Stat study, titled “Consumer Video Subscription Services Over IP Networks,” also revealed that Microsoft is developing enhanced programming technology through the Internet, as well as new hardware, that will eventually create new business models for pushing content to portables.
In-Stat said that it sees the key to long-term success in the business will be the ability to build a brand name that delivers a quality service to computers, TV sets and mobile devices.
In the survey, In-Stat said that sports will lead the way in building subscription services.
The study cited plans of B-Sky-B, which launched Sky Sports Broadband in the UK, partnering with AOL and Wanadoo to deliver enhanced sports programming via the Internet. It also cited a deal between Major League Baseball and Microsoft that is slated to deliver breakthrough video services via MSN.
“Sports video subscriptions are being used to leverage what networks already have on TV, and are enticing more consumers to sign up for enriched broadband services such as MSN Premium,” said Terry Kaufhold, an In-Stat analyst. "Synacor and Earthlink are bundling sports video bargains along with greatly improved user convenience.”
The study also said that other companies, including DivX and Akimbo, are helping bridge Internet video delivery. DivX is working on technology to link online downloads to DVD recorders, and Akimbo’s innovative push service is moving forward.
Also TerraLycos Entertainment is growing market share in Europe and Latin America with movies, games and sports video content. And Movielink is adding new types of content and more flexible pricing, according to the study.
In-Stat said another player, CinemaNow, is another company to watch. CinemaNow has the largest library of movie titles, and is expanding in Asia and Europe with strong broadband partners.
