Comcast, Time Warner Cable and other service providers have been loath to acknowledge growing threat of Internet-bypass services via video game consoles, IPTVs and other connected devices which Parks Associates analysts identify as a major 2010 trend.

Revenues generated from Internet-connected VOD will near $1 billion this year and top $3.6 billion by 2014, comprising 40 percent of all premium online video transactions projected to top $8 billion, Parks says.

The share of active online video viewers (39 percent for full-length TV programs and 30 percent for full-length movies) nearly matches the 37 percent of digital cable subscribers using premium VOD, according to a recent Park survey.

From the article, "The Walmart-Vudu Match Up: An End-Run Around Cable" by Diane Mermigas

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