Web video to hit $1bn by end of the decade

Content providers decision to play nice pays off...
Written by Jo Best, Contributor

Content providers decision to play nice pays off...

Internet video services are still finding their feet but according to analysts they have a $1bn future.

A new report from IDC predicts that video services, such as Google's video store, will be generating revenues of $1.7bn by 2010.

The figure marks an increase of over $1.5bn from 2005 revenues, spurred, the analysts say, by content providers' newfound willingness to allow their wares to be distributed online.

Despite a boom in revenues, the structure of the market will remain fairly static, according to IDC, with advertising-based models dominating for some time to come.

Within the next two to three years, however, on-demand and download services, such as those offered by iTunes for TV shows, will start to make more of a mark, as will subscription-based services, buoyed by the emergence of home networking.

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