Informa predicts 2012 online TV, video revenue to exceed $6 billion

By 2012 the North America could be the largest revenue-generating region of the globe.

by Helen Leggatt

That’s according to new research from Informa Telecoms & Media. The report, entitled "Online TV and Video: Beyond User-Generated Content", forecasts that legitimate online TV and video services will generate around $6.3 billion in 2012, around ten times that for 2006.

This evolution of broadcasting technology is coupled with a new generation that seeks a television channel complete with the interactivity and sociality they can get online. Simon Dyson, co-author of the report said "the TV business has already acknowledged some of the changes and is pushing concepts such as on-demand and digital video recorders. The rise of online TV and video is another step that tips the balance of power towards the consumer."

The report predicts that revenue from U.S. online TV and video revenue would top the spend chart at $4 billion, with the U.K. coming in second with an increase $42m last year to $708m in 2012.

Broadband penetration, another factor which will contribute to the rise in online TV and video, is also increasing. By 2012 it is predicted that the U.K. will have 79 percent of households subscribing to broadband, and the U.S. 76 percent. Japan and South Korea are expected to top the broadband ranks with 91 percent and 81 percent respectively.

While it all looks rosy for online content, broadcasters still need to negotiate piracy and copyright minefields.