Strategy Analytics: Paid Video to Overtake Free Video on the Web in 2009

BOSTON & LONDON--(Business Wire)--
In a webinar presentation to leading global media and technology companies,
Strategy Analytics' digital media analyst, Martin Olausson, predicted that the
global paid online video segment will reach $3.8 billion in 2009, and exceed the
free online video segment, which is expected to reach $3.5 billion this year.The
total online video sector is predicted to grow 38% annually until 2012, with the
paid video segment growing faster than the free video segment in the coming
years.

While the free web video segment - consisting of web video ads and public
broadcasting web video - is expected to continue to show rapid growth at 37%
compound annual growth rate in the next four years, the paid online video
segment, including download-to-own, rental and subscription services, is
expected to grow even faster, at 39% annually, during the same period according
to this latest Strategy Analytics research.

"The economic downturn and diminishing advertising budgets have increased the
focus on consumer paid content on the web in the last six months," said Martin
Olausson, Director of Digital Media Research at Strategy Analytics. "Increased
consumer awareness and uptake of services, such as Netflix WatchNow and Xbox
Live Video Store, in combination with new services such as the TV Everywhere
initiative announced by Comcast and Time Warner Cable will also help drive the
paid online video segment in the coming years."

Click title for access to "21st Century Consumers & the Future of Digital
Media," the webinar, video and slides.

About Strategy Analytics

Strategy Analytics, Inc. provides timely and actionable market intelligence
focused on opportunities and disruptive forces in the areas of Automotive
Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless
Intelligent Systems and Virtual Worlds. Headquartered in Boston, MA, with
offices in the UK, France, Germany, Japan, S. Korea and China, Strategy
Analytics works with clients through annual multi-client services, management
team workshops and custom consulting engagements. For more information, please
visit http://www.strategyanalytics.com/

Strategy Analytics, Inc.
US Contact:
Jia Wu, +1 617-614-0712
jwu@strategyanalytics.com
or
European Contact:
Martin Olausson, +44(0) 1908 423 611
molausson@strategyanalytics.com

Copyright Business Wire 2009