A recent report from technology research firm In-Stat indicates that the potential market for online video content worldwide will grow from 13 million households in 2005 to 131 million households in 2010. One of the drivers behind this growth is the widespread adoption of broadband, and In-stat predicts that by 2010 there will be 413 million broadband households worldwide, up from 194 million in 2005.



While having the ability to view and download online video content is one part of the equation, the other part is enabling people to easily access both professional and user-generated content. Aggregators such a Google, Yahoo!, AOL and Apple have all thrown their hats into the online video ring and are competing for eyeballs with the likes of YouTube, MySpace and other social networks. Recent data from Nielsen//NetRatings show that YouTube is attracting significant numbers of Internet users, particularly those over 35 years old.

It is still the early days for the online video market, but there is little doubt that the Internet will grow in significance as a distribution platform for video content. This presents portals and aggregators with an opportunity to generate pay-per-view and advertising revenue; it posses risks to traditional broadcasters who may lose audience online, and it opens up another arena for advertisers and marketers.

A selection of charts from eMarketer’s eStat Database illustrates (as well as any words can) the growing consumer usage of online video.