Online Video Sales to Hit $1.5 Billion Next Year

BOSTON, December 14: A new report from the technology
research firm Strategy Analytics says that online sales of TV shows, movies and
other content will reach $1.5 billion in 2007, up from $298 million this year.

The report, The Video Store Goes Virtual: The Global
Outlook for Online Video Sales, further
predicts that global revenue from online video sales, rentals and subscriptions
will surge to $5.9 billion in 2010, accounting for 8 percent of total home
video industry revenues. "2007 will be remembered as the year in which
online sales of prerecorded video finally become a real business," said
the report's author, Martin Olausson, senior analyst from the Strategy Analytics
Broadband Media & Communications service. "Just like with music,
online delivery of video content is now emerging as a viable and increasingly
important distribution channel for content owners."

Strategy Analytics also says that while pay-to-own is the
leading model, subscription based services and rentals will account for about
25 percent of annual video sales to consumers.