Hollywood Embracing Internet Video, Analyst Says

If studios open spigots, it will help fuel explosive growth in movie and TV downloads.

By + More

A couple of new studies project similar numbers for the expected boom in Internet video over the next few years. Parks Associates says consumer spending on broadband video will grow from about $1 billion this year to about $6 billion in 2013. In-Stat says revenues will jump to at least $4.5 billion in 2012.

Parks' analyst, Kurt Scherf, says studios are sold on Internet video. "Hollywood has discovered that online video distribution provides more upside to their businesses than risk," Scherf says. If he's right, and the studios open the spigots, the growth numbers may be conservative.

In-Stat makes the interesting prediction that flat-rate subscriptions, as opposed to pay-per-views, will drive much of the growth. That despite the recent failure of the Vongo subscription service and the struggles of Rhapsody, a flat-rate music offering.