Internet Video: Direct to Consumer Services

This report identifies early leaders in Internet video services and technologies. The report provides forecasts for television download services; movie rental, purchase, and subscription services; and revenues from both embedded and non-embedded advertising in Internet video and Internet video Websites. It concludes with analysis and recommendations for major players in the Internet video delivery value chain.

“We are in the midst of unprecedented experimentation on the part of major broadcasters, movie studios, retailers, and content aggregators in distributing video content online and attaching advertising revenue to a plethora of offerings,” said Kurt Scherf, vice president and principal analyst, Parks Associates. “The early results, as reported by some of today’s media giants, are quite promising.”

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The Bottom Line

1.0 Notes on Methodology

1.1 Consumer Data

1.2 Definitions

2.0 Current Status of Internet Video Markets

2.1 Consumers Moving Expenditures to Online Content

2.2 The Emergence of Online Video

2.2.1 The Video Industry as We Know It

2.2.2 Industry Drivers

2.3 Identifying the Offerings

2.3.1 Movie Services

2.3.2 Broadcast Network Initiatives

The Landscape: Opportunities and Challenges

Current Internet Video Efforts

2.3.3 Web and Entertainment Portals

2.3.4 Aggregators

3.0 Industry Issues

3.1 DRM and Content Protection

3.2 Licensing

3.3 Net Neutrality and Broadband Service Providers

3.4 Synergy between Internet Video and Social Networking

4.0 Technology Solutions

4.1 Video Delivery Networks

4.2 Video Formats

4.3 Online Video Editing/Mash-up Solutions

4.4 Online Video Advertising

4.5 End-to-End Solutions Providers

4.6 Consumer Video Platforms: PC-TV Linkage

4.7 Video Search

5.0 Forecasts

5.1 User-paid Internet Video Services

5.1.1 Rentals (Movies)

5.1.2 Download-to-Own/Burn (Movies and TV Shows)

Movies

TV Shows

5.1.3 Subscriptions (Movie Services)

5.2 Ad-supported Internet Video Services

5.2.1 Embedded Ads in Internet Video Streaming

5.2.2 Non-embedded Display Ads on Video Streaming Websites

6.0 Recommendations for Industry Players

6.1 Content Creators/Owners

6.2 Advertisers/Agencies

6.3 Broadband (Access) Service Providers

6.4 Web/Entertainment Portals

6.5 Technology Enablers

Resource Book

Section I: Consumer TV and Movie Habits

Subscriptions to Video/TV Services

TV Viewing Habits

DVR Usage

Movie Watching Habits

Section II: Adoption of Online Video

Consumer’s Online Video Habits

Paying for Online Video

Popular Internet Video Content

Online Video and Advertising

The PC as a Video Platform

Section III: Consumer Interest in Online Video Services

Interest in Internet Video Services

Price Elasticity for Movie and TV Downloads

Online Video, P2P, and Social Networking

Section IV: Company Profiles

Movie Streaming/Download Services

Amazon.com (Unbox™)

AOL Video

Apple iTunes®

CinemaNow

ClickStar, Inc.

EZTakes

Guba

MovieFlix, Inc.

Movielink LLC

Starz Ticket

VongoSM (Starz Entertainment Group-SEG)

Content Creators/Owners

Time Warner

The Walt Disney Co.

CBS (Columbia Broadcasting System)

News Corp. (Fox)

NBC Universal

Web and Entertainment Portals

Google Video

MSN Video

Yahoo Video

User-generated Video Portals

Grouper Networks

MySpace

Revver

YouTube

Content Aggregators: Consumer

Aeon Digital International

Akimbo Systems Inc.

DAVE.TV

Content Aggregators: Service Provider

Brightcove

Veoh Networks

Technology Enablers

Akamai

BitTorrent

Blinkx

Cachelogic

Gotuit Media Corp.

Kontiki (Now part of VeriSign Broadband Content Services Group)

Limelight

Macrovision

MediaZone

Metacafe

RealNetworks

ROO

ThePlatform

VeriSign

Vidavee

Wurld Media

Zattoo

The Bottom Line

Network Elements for IPTV and Internet Video
IPTV and Internet Video Attributes
Who is Paying for Online Content?
U.S. Video Revenue Market Share (2001-2005)
U.S. Theatrical Box Office and DVD Revenues
Internet Video: Movie Services
Activities by Age: Watching TV, Listening to Music, Surfing the Web
Internet Video: Broadcast Network Initiatives
Internet Video: Online News Initiatives
Internet Video: Web & Entertainment Portals
Internet Video: Consumer Aggregators
Internet Video: Service Provider Aggregators
Solution Providers: Conditional Access, DRM, and Digital Watermarking
Comparing Different DRM Technologies
Digital Fingerprinting Technologies
SWOT Analysis: BSPs vs. Over-the-Top Providers
Synergy between Online Video and Social Networking
Internet Video Value Chain
Video Delivery Networks
Online Video Formats: WMV vs. Flash
Internet Video Editing/Mash-up Solutions
Internet Video Advertising: Acquisitions and Partnerships
End-to-End Solutions Providers
Updates on Media Adapters
Emerging Video Search Companies
Residential Broadband Subscriptions
Internet Video Movie Rental Forecasts
Internet Video Movie Download-to-Own/Burn Forecasts
Internet Video TV Download Forecasts
Internet Video Movie Subscription Forecasts
Total Annual Revenues: User-paid Internet Video Services (Chart)
User-paid Internet Video Services Revenue Summary (Table)
Consumers Viewing Internet Video Streams at Least Monthly
Total Video Clips Streamed, per Month: U.S. Broadband Households
Ad-Supported Internet Video Forecasts: Embedded Ads
Ad-Supported Internet Video Forecasts: Non-embedded Display Ads
Total Annual Revenues: Ad-supported Internet Video (Chart)
Total Ad-Supported Internet Video Forecasts (Table)
Total Annual Revenues: User-paid and Ad-supported Internet Video Services (Chart)
Total Annual Revenues: User-paid and Ad-supported Internet Video Services (Table)

Resource Book

Paid Services Penetration in U.S. Internet Households: 2004 to 2005
Likelihood of Subscribing to Paid Services
TV Service Subscription (Q3/2006)
Monthly Expenditure on Television Services
Time Spent Viewing Television per Week
Number of Hours per Week Spent Watching Television, by Monthly Expenditure on Television Services
Monthly Use of Video Services, by Monthly Expenditure on Television Services
Adoption of Video Products/Services, by Monthly Expenditure for TV Services
On Average, How Many Times do you Rent a DVD Television Series for Home Viewing in a Typical Month?
On Average, How Many Times do you Rent a DVD Television Series for Home Viewing in a Typical Month, by Users/Non-users of DVD Delivery Service?
On Average, How Many Times do you Purchase a DVD Television Series for Home Viewing in a Typical Month?
On Average, How Many Times do you Purchase a DVD Television Series for Home Viewing in a Typical Month, by Users/Non-users of DVD Delivery Service?
Consumer Perception of Various PVR/DVR Features
Recorded Television Programming: Top Ten Programs
Movie Habits (Q3/06)
Monthly Frequency of Ordering a Pay-per View or Video-On-Demand Program at Additional Cost
On Average, How Many Times do you see a Movie at the Theater in a Typical Month?
On Average, How Many Times do you Rent a DVD Movie for Home Viewing in a Typical Month, by Users/Non-users of DVD Delivery Service?
On Average, How Many Times do you Purchase a DVD Movie for Home Viewing in a Typical Month, by Users/Non-users of DVD Delivery Service?
Online Video Habits (Q3/06)
Online Video Habits: by Gender
Online Video Habits: by Age
Online Video Habits: by Internet Access
Percentage of Respondents Paying for Online/Internet Service
Monthly Average Spent on Online/Internet Service
Percentage of Respondents Paying for Online/Internet Service, by Age
Percentage of Respondents Paying for Online/Internet Service, by Gender
Mode of Payment for Services: A Music Service from the Internet
Mode of Payment for Services: A Video Service from the Internet
Monthly Expenditure on Online Video (Q3/06)
Type of Internet Content Viewed/Downloaded
Type of Internet Content Viewed/Downloaded, by Gender
Type of Internet Content Viewed/Downloaded, by Age
Type of Internet Content Viewed/Downloaded, by Users/Non-users of Paid Monthly Video Service
Most Relevant Advertising or Marketing Method
Most Relevant Advertising or Marketing Method, by Gender
Advertising or Marketing Method that Respondent Interacts with Most per Week, by Downloading Video
Advertising or Marketing Method that Respondent Interacts with Most per Week, by Watching Streaming Video
Most Relevant Advertising or Marketing Method, by Downloading Video
Most Relevant Advertising or Marketing Method, by Watching Streaming Video
How Video from PCs/the Internet is Used: Top Five Way
How Music from PCs/the Internet is Used: Top Five Ways
Watching Videos on PCs (Q3/06)
Interest in PC-TV Linkage for Viewing Downloaded Movies: by Usage of Video Downloads (Q3/06)
Video Perspectives (Q3/06)
Interest in Various Video Services: by Age (Q3/06)
Interest in Various Video Services, by Gender (Q3/06)
Preference for Viewing New Release Movies (Q3/06)
Preference for Viewing New Release Movies, by Age (Q3/06)
Preference for Viewing New Release Movies, by Gender (Q3/06)
Price Elasticity for Downloadable Movies
Price Elasticity for Downloadable TV Programs
Interest in A La Carte Movie Download Services (Q3/06)
Interest in A La Carte TV Program Download Services (Q3/06)
Interest in A La Carte Movie Download Services by Affinity to On-Demand Video (Q3/06)
Interest in A La Carte TV Program Download Services by Affinity to On-Demand Video (Q3/06)
Video Habits: by Social Networking Users
Frequent Social Networking Users among Various Age Groups
P2P Web site Usage (Q3/06)
Number of Video Files Downloaded via P2P (Q3/06)
P2P Web site Usage: by Age (Q3/06)
P2P Web site Usage: by Gender (Q3/06)
Interest in A La Carte Movie Downloads: by Usage of P2P Web site for Movie Downloading (Q3/06)
Interest in A La Carte TV Downloads: by Usage of P2P Web sites for TV Downloading (Q3/06)
Amazon.com Unbox™ Background and Information
Unbox Service Information
AOL Company Background and Information
AOL Video Service Information
Apple iTunes Company Background and Information
Apple iTunes Service Information
CinemaNow Company Background and Information
CinemaNow Service Information
ClickStar Company Background and Information
ClickStar Service Information
EZ Takes Company Background and Information
EZTakes Service Information
Guba Company Background and Information
Guba Service Information
MovieFlix Company Background and Information
MovieFlix Service Information
Movielink Company Background and Information
Movielink Service Information
Starz Ticket Company Background and Information
Starz Ticket Service Information
Vongo Company Background and Information
VongoTM (Starz) Service Information
Time Warner Service Information
Disney Service Information
CBS Service Information
News Corp Fox Service Information
NBC Universal Service Information
Google Video Company Background and Information
Google Video Service Information
MSN Video Company Background and Information
MSN Video Service Information
Yahoo Video Company Background and Information
Yahoo Video Service Information
Grouper Networks Company Background and Information
Grouper Networks Information
MySpace Company Background and Information
MySpace Service Information
Revver Company Background and Information
Revver Service Information
YouTube Company Background and Information
YouTube Service Information
Aeon Digital Company Background and Information
Aeon Digital Service Information
Akimbo Company Background and Information
Akimbo Service Information
DAVE.TV Company Background and Information
DAVE.TV Service Information
Brightcove Company Background and Information
Brightcove Service Information
Veoh Company Background and Information
Veoh Networks Service Information
Akamai Company Background and Information
BitTorrent Company Background and Information
BitTorrent Service Information
Blinkx Company Background and Information
Blinkx Service Information
Cachelogic Company Background and Information
Gotuit Company Background and Information
Kontiki Company Background and Information
Limelight Company Background and Information
Macrovision Company Background and Information
MediaZone Company Background and Information
Metacafe Company Background and Information
Metacafe Service Information
RealNetworks Company Background and Information
Rhapsody Service Information
ROO Company Background and Information
ROO Service Information
ThePlatform Company Background and Information
VeriSign Company Background and Information
Vidavee Company Background and Information
Wurld Media Company Background and Information
Zattoo Company Background and Information
Zattoo Service Information

Publish Date: 4Q 2006

Pages: 159


Authored By:
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Executive Editor: Tricia Parks
Published by Parks Associates

© December 2006 Parks Associates
Dallas, Texas 75230

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America.

Disclaimer
Parks Associates has made every reasonable effort to ensure that all information in this report is correct. We assume no responsibility for any inadvertent errors.

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