Technology research firm Strategy Analytics claims that online video sales such as those purchased at the iTunes Store are poised to make lots more money in 2007 than they have in 2006. The company predicts in a new report that global online video sales will grow from approximately $298 million in 2006 to almost $1.5 billion in 2007. It also estimates the market to grow to $5.9 billion by 2010.
“2007 will be remembered as the year in which online sales of prerecorded video finally become a real business,” said Martin Olausson, Strategy Analytics Senior Analyst and author of the report.
The new report, entitled The video store goes virtual: The global outlook for online video sales, said that the iTunes Store is the leading source for paid video downloads right now, but predicts that other major players will make a deep impact in the market. Among them are Wal-mart, Time Warner and NetFlix, which are expected to enter the market in the near future.
And while pay-to-own downloads like those offered by the iTunes store account for most online video revenues, Strategy Analytics projects that online video “rentals” and subscription-based online video services will account for about one quarter of all annual online video sales to consumers by 2010.
While Strategy Analytics predicts that 2007 will be the boom year for online video sales, with sales rising 389 percent, the company also says that 2008, 2009 and 2010 will see increases of 106 percent, 49 percent and 32 percent respectively.
The full report is available for paid subscribers of Strategy Analytics.
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