The relentless rise of online video is now taking on unstoppable proportions. Earlier this year, a bold prediction was made that in another few years, online video would constitute around 60% of web traffic. This trajectory seems right in line with the current trend because a recent study is revealing that the growth of online video is even more profound than previously imagined.
The study, conducted by Futuresource Consulting, has revealed that 2011 has seen a tripling of online video revenues with a projected growth exceeding $7 billion a year by 2015. This growth is expected to be driven largely by the likes of Youtube, who presently has over 800 million active users who generate over 3.5 billion views per day.Senior Analyst at Futuresource Consulting, Mai Hoang, is convinced that online video has achieved critical mass and cites the over $3 billion in revenues expected this year for paid-for online video content. Sites like Netflix (even with its troubles) continue to lead the field in the premium content space, and Mr Hoang expects even stronger growth when the rest of Europe catches up. Presently only the big four English speaking countries account for the paid-for content revenues but this is expected to surge once Youtube’s rolls out fully its paid content services in the coming months.
Suffice it to say, video is here to stay and its one cash cow that’s well worth milking.