28 May 2008
Encouraged by growing broadband penetration and increasing connection speeds, online video has seen astronomical growth among consumers in recent years.
According to ABI Research, the number of consumers watching online video content is set to quadruple over the next few years, exceeding one billion in 2013.
The analyst noted that distribution methods will also evolve in the future, as providers look to utilise content distribution networks, peer-to-peer networks and hybrid networks in order to reduce the strain video places on broadband networks.
Cesar Bachelet, senior analyst at ABI Research, commented: "The rapid expansion of broadband video creates opportunities across a number of market sectors."
He explained that content providers, internet portals and new entrants, such as user-generated content sites, broadband video sites and internet TV providers, would all attempt to gain a share of the growing market for video content.
In April 2008, broadband expert thinkbroadband.com urged for an industry debate over whether or not video content providers should contribute to the costs of upgrading internet infrastructure to cope with increased bandwidth demands.
Telecoms regulator Ofcom estimates between £400 million and £830 million investment will be required over the next five years in order cope with network capacity required by video on demand services.<br/>
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