Online A/V Revenues Rev

Online A/V Revenues Rev

JULY 16, 2007

Movie downloads begin to make a dent.

Revenues from streaming and downloadable audio and video will hit $2.6 billion in 2007, according to Accustream iMedia Research‘s
"Streaming Subscription and Download Media 2003–2008" report. The
projection includes both streaming subscriptions and media download
revenues, and represents a 39% gain over 2006 levels.

Music will account for 85% of these revenues, with sports,
movies, news, entertainment and Real Networks content making up the
rest.


Music download and subscription revenues will grow nearly 50%
in 2007. Most online music revenues come from purchases, with 82% of
total revenues generated from paid downloads.

US Online Music Revenues, by Type, 2007 (% of total)

Movie download revenues will reach $60 million in 2007, up 133.4%
over 2006. More than $100 million in revenues will come from movie
downloads in 2008.

onlineaudiovideorevenuesrev2.gif

The online side of the digital music industry has received the most
focus over the past few years because key developments in that area —
notably the emergence of illegal file sharing in the late 90s and the
rise of the Apple iTunes Music Store in 2003 — have had the deepest
impact on the industry’s fortunes.

eMarketer’s own projections for the US put total online music revenues at $3.0 billion in 2011, from $1.1 billion in 2006.

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