The net once again beat expectations for video and filmed entertainment in the first quarter of 2008. Major Hollywood studios, TV networks, record companies and User Generated Video (UGV) leaders like YouTube are apparently living up to the promise of new media technology. Revenue streams are also becoming steadier and more robust.
The growth can be largely attributable to the proliferation of high-speed Internet connections, particularly in China. "User-generated video (UGV) and the video sharing sites that exemplify this form of content have spread across the globe," says Michael Inouye, In-Stat analyst.
"China is a prime example of UGV's global reach and appeal, capturing a significant portion of the world market, making it second only to the US. In general, viewing of online video has increased in the US in the past year, although participation is still stratified by age."
The numbers are impressive. Instat for example claims that over the next 4 years net-video-buffs will be able to choose from some 160 billion (yes with a "b") videos available online at any given time. Despite this breathtaking number, the content will only bring in about US$1.19 billion during the same period.
In contrast, Apple iTunes is one business model that has remained popular and very profitable even though it subverts the net's largely ad-driven or "free" environment.
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