New research from Informa Telecoms & Media shows that legitimate online TV and video services will generate revenues of US$6.3 billion in 2012, which represents almost ten times the 2006 figure. Advertising will consistently outperform a la carte and subscription-based download services in terms of revenue generation.

Informa's Online TV and Video: Beyond User-Generated Content report has found that the trend towards online TV and video is symptomatic of wider cultural changes. A new ‘breed’ of consumers has emerged who find it difficult to align themselves with the passive model of traditional linear TV.

Simon Dyson, co-author of the report said “the TV business has already acknowledged some of the changes and is pushing concepts such as on-demand and digital video recorders. The rise of online TV and video is another step that tips the balance of power towards the consumer.”

Top five online TV & video countries by revenues (US$ million)

	2006	2009	2012
US	538	2,010	3,941
UK	42	364	708
Japan	24	155	510
Germany	9	77	254
France	10	68	238
Source: Informa Telecoms & Media

While the Internet has long been considered a technology of the future for film and TV executives, it is now having a measurable impact on traditional sectors, indicating that its time has come. Digital media is changing the consumption of TV from an ‘on-the-couch’ to a ‘watch anywhere’ activity. Content has become interactive rather than passive, with the emergence of ‘citizen media’ concepts, such as blogs and social networks.

According to Adam Thomas, Media Research Manager at Informa, “these trends are now so pronounced, that the term ‘social revolution’ no longer seems too much of an exaggeration. With social change occurring on such a large scale, traditional media companies are being forced to change their behaviour and business models to adapt their offering to consumer demand. The challenge for the TV industry is to monetise this massive interest in online content.”

The biggest negative for broadcasters and content suppliers is the potential for online TV and video to hurt their existing business models. To date its harmful impact has been limited and there are examples of a beneficial affect, with CBS and NBC both reporting improved TV ratings for programmes showcased online. The report has found that content companies actively co-operating with the leading online TV and video services (YouTube, Google Video, iTunes Video, MovieLink, Amazon Unbox, AOL UnCut, Yahoo! Video, CinemaNow…etc) are best-placed to avoid the internet’s potentially harmful effects.

Online TV and Video: Beyond User-Generated Content is published by Informa Telecoms & Media, which produces several business information publications, including the New Media Markets, Converging Media and TV International research services.

Online TV and Video: Beyond User-Generated Content includes important illustrative statistics and reliable forecasts to 2012. Analysis of this pivotal market is worldwide, with its comprehensive forecasts broken down by region and for the leading 14 countries in detail. For more information or to order your copy please visit the report website.