Study: Streaming media a growing cash cow
Streaming video and music will generate more than $78 billion in network-derived and content-derived revenue over the next six years in the United States.
According to a recent study by The Insight Research Corp., streaming media includes content that is delivered across the Internet, IPTV network or mobile handset. Streaming media refers to the transmission of digital audio and video files over an IP network or wireless network in real time or on-demand, while prohibiting users from storing the files locally.
The study also estimated the revenue from the various types of content-derived revenues, along with associated advertising revenue. The streaming market is projected to grow at a compound annual rate of 27 percent over the next five years, driven by on-demand audio, on-demand video and the accompanying advertising revenue.
"Over the past seven years, as we've tracked the developments in streaming it has evolved from an esoteric niche to a mainstream market," said Robert Rosenberg, Insight Research president. "What we predicted way back when is coming to fruition. The advertising revenue that long supported traditional TV is gravitating to this new medium, putting downward pressure on traditional TV distribution schemes.”