U.S. revenues for online video to exceed $1.8 billion by 2014

CONNECTIONS™: The Digital Living Conference & Showcase concluded last week following multiple sessions focused on value-added services, new platforms and distribution models, and digital media consumption. Industry leaders affirmed consumer demand for online video and proliferation of connected CE are driving the shift to multiplatform access within the home.

International research firm Parks Associates hosted CONNECTIONS™ on June 8-10 at the Santa Clara Convention Center. The conference featured keynotes from Sony, Samsung, Verizon, and Intel and research from Parks Associates, including the following insights, as noted in The Viodi View and The Urban Network:

• Annual U.S. revenues for online video from PCs and mobile devices will exceed $1.8 billion by 2014.
• Premium support services will bring $1.4 billion annually in additional revenue to U.S. service providers by 2014.
• U.S. online video ad revenues reached $968 million in 2009 and will hit nearly $1.4 billion in 2010.
• Limited audience reach, the lack of a single-source measurement standard, and lack of format standards are major factors that could impact the growth of online video.
• The total addressable U.S. market for online video is approximately 170.5 million users in 2010 and will grow to 220 million by 2013.
• In-stream ads (pre-rolls) will drop from 95% today to 79% of the U.S. online video ad unit inventory by 2013.
• Consumers are still cautious in their purchasing, and according to Tricia Parks, CEO, Parks Associates, “No company can let its guard down.”
• A digital, centralized storefront is what consumers want. Will the DECE be the organization that makes this happen, or will service providers reject this move and create their own proprietary media locker services?
• 3D is here to stay. By 2014, one-third of homes will have a 3DTV, according to data presented by Samsung.
• Energy is moving from a commodity to a service, thanks to the ongoing expansion of the smart grid in the U.S.
• According to Cisco’s Ken Wirt, 91% of all Internet traffic by 2013 will be video bits.

“Among the many intriguing storylines from this year’s event, CONNECTIONS™ showcased the real developments in true multiplatform content availability, the extension of home networking applications into new areas such as home controls and energy management, and the analysis and research confirming that digital home technical support services will generate significant revenue for service providers, retailers, and OEMS,” said Kurt Scherf, VP, principal analyst, Parks Associates. “With these developments come many questions about the potential of 3DTV, the timeline for the ‘digital locker,’ the future of ‘TV Everywhere’ services, and the role of the user interface in unifying the consumer media and entertainment experience. We look forward to shedding more light on these and other consumer technology issues at future events, including CONNECTIONS™ Europe in November.”

In his CONNECTIONS™ keynote “Entertainment in a Connected World,” Mitch Singer, CTO, Sony Pictures Entertainment; President, DECE, discussed current efforts by the DECE to establish a standard for distributed content.

In his keynote “TV Technology in the New Age of Consumer Buying,” Scott Birnbaum, VP, Samsung LCD Business, detailed the evolution of the television and the trends toward thinner, more artistic and eco-friendly set designs.

In his keynote “The Connected Home: Turning SciFi into Non-Fiction,” Joseph Ambeault, Director, Product Development and Management, Video Services, Verizon, discussed the significant potential of the connected home due to the convergence of devices and services.

Wilfred Martis, General Manager, Retail CE, Digital Home Group, Intel, discussed the Era of the Smart TV, plus the need for players to act quickly in this rapidly changing market, in his keynote “Smart TVs: Ready for Primetime,” which also featured Anthony Soohoo, SVP, Entertainment, CBS Interactive.

Archived videos of the keynote addresses are available at www.parksassociates.com/connvideo.

CONNECTIONS™ sponsors:

• Reception: Verizon Wireless
• Gold: Cisco, Intel
• Silver: Accenture, ActiveVideo Networks, Allegro, DivX, D-Link, Gigle Networks, Intamac, ProVision Communications, PacketVideo, RedMere, Rovi, support.com
• Bronze: 4Home, Accedo Broadband, Affinegy, AlertMe, Arxan, IBM, iTOK, LEVEL Studios, PlumChoice, Vuze, Zenverge
• Breakfast: Roxio
   

Parks Associates will host CONNECTIONS™ Europe on November 15-16 in Amsterdam, Netherlands, and CONNECTIONS™ Summit at CES on January 6, 2011. Visit www.connectionsconference.com for more information.

About CONNECTIONS™

Parks Associates' 27th annual CONNECTIONS™: The Premier Connected Home Conference features an in-person conference on May 23-25, 2023 and multiple virtual sessions hosted throughout 2023. The event focuses on the adoption of technology including smart home, security, connected health, energy, and home automation.

Bringing together more than 1,500 senior executives, CONNECTIONS™ provides networking opportunities combined with visionary keynotes and virtual sessions. The Parks Associates analyst team leads all conference sessions, which are focused on technology innovations, consumer adoption and trends, product and service forecasts, and the evaluation of new business strategies, partnerships, monetization opportunities, and value-added service design.

Throughout the event, sponsors offer demos during networking events, spotlighting new technology innovations and services for the entertainment, mobile, and smart home market segments.

CONNECTIONS™ 2023 features an in-person conference on May 23-25, 2023, with virtual sessions on March 2, July 20, and October 5. For more information, contact [email protected], call 972-490-1113, visit www.connectionsconference.com.

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