The online video market will have a retail value of more than $3.8 billion worldwide by 2011, according to Understanding & Solutions.

The research company said that
although the United States had the most developed online video market
so far, online video revenue for the country would only reach $280
million in 2007, accounting for 1% of the total home video market.

"By 2011 online video in the US will represent 8% of total home
entertainment revenues, with Western Europe close behind at 7%," said
Mai Hoang, analyst at Understanding & Solutions.

"What’s more, multiple formats will coexist in the future, and
no one format will control the home entertainment landscape, quite
unlike the domination of DVD since the demise of VHS," Ms. Hoang said.

"The new generation of high definition video formats will also
help to shore up packaged media’s presence within home entertainment
revenue streams," she said.

Via eMarketer