Broadband video market in US has grown ‘significantly’, says new research from Parks Associates

September 26, 2007 – The number of paying users of online video sites in the US has grown ‘significantly’ between 2006 and 2007, according to new research from Parks Associates.

The study, entitled ‘Broadband Video: A Market Update’, found that there are now nearly 12mn broadband households in the US paying for online video content, compared to just over 3mn in 2005-06.

“We have seen widespread use of the Internet as an electronic delivery medium for video content over the past couple of years,” said Kurt Scherf, Vice President and Principal Analyst for Parks Associates.  “Certainly, the availability of higher-quality content and a significant base of products like the iPod that allow for more seamless content-to-device linkages have provided a boost to the online video space.  There also seems to be much demand for shorter content up to the length of a television episode.”

Scherf added however that the use of the Internet as a delivery network for video has seen as many failures as successes, and that the market remains very much in flux.  “With issues surrounding content rights, the role of incumbent video providers, business models, and questions about how consumer electronics manufacturers and other service providers will actually succeed, the space is very fluid at this point.”