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Report: User-Generated Video Revenue to Pass $1.19 billion by 2012

By Michael Dinan, TMCnet Editor

Fueled by increasing popularity in China, user-generated video revenue is expected to eclipse $1.19 billion by 2012, according to a new study.

 

InStat’s report, “User-Generated Video, a Global Stage for You” also calls for 160 billion user-generated videos for that year.

 

According to InState, a high-tech market research firm, features such as high-definition video, the ability to store even larger files and increasing demands on bandwidth will all grow fast enough to accommodate the influx of the videos.

 

Individuals who use mobile phones to view online video sites are most likely to pay into the market and drive the amount of content, according to the study.

 

That’s good news, according to a separate study which found that companies which oversee the financial transactions when people use their mobile devices to purchase music or videos can expect to see more and more business.

 

So-called “mobile digital commerce services” will take in about $1.9 billion in revenue by 2012, according to MultiMedia Intelligence. The figure represents a 73 percent increase from last year’s total, $1.1 billion, according to the Scottsdale, Arizona-based company.

 

According to the company, video will drive the majority of that growth.

 

Analysts say that developing mobile device markets such as China will ensure the international industry growth.

 

“China is a prime example of (user-generated video’s) global reach and appeal, capturing a significant portion of the world market, making it second only to the United States,” InStat officials say. “In general, viewing of online video has increased in the United States in the past year, although participation is still stratified by age.”

 

In the United States, video sharing sites such as YouTube regularly attract more than 80 million viewers per month. Other “online TV” companies such as Joost (News - Alert) and Hulu have become extremely popular destinations because they use clean, fast technology that broadcasts a wider range of programming.

 

The sites are becoming also are being more and more widely used as they serve as another mode of communications for Internet users on social networking sites such as Facebook (News - Alert)  or video communications sites such as TokBox.

 

InStat’s new study includes worldwide forecasts for user-generated revenue and served videos, and regional market share percentages for served videos, through 2012, according to the research firm. The results of two consumer surveys regarding the videos are presented and analyzed, InStat said. The study costs $3,495.

 

Michael Dinan is a TMCNet Editor. To read more of his articles, please visit his columnist page.

 

Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is Accelerating 3G Mobile Video Communications, brought to you by HP Software.

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