Where would the internet be without advertising? Perhaps it would still be stuck in the pre dot com crash days. Or perhaps we would be paying through the tooth for our information, just like we used to, and the world wide web would have disappeared up its own ether.
And with the internet TV age, it can only continue - right? Advertising will remain the way we get our content, it’s just that we will get even more choice - at least that’s what we assume.
But according to a report from Adams Media Research, by 2011 TV from the internet that we pay for will be worth more than twice as much as advertising funded TV.
It’s big numbers all round. The research suggests that by the end of the second year of the next decade, advertiser spending on internet video streams to PCs and TVs will approach $1.7 billion. Meanwhile, paid for movie and TV downloads will generate consumer spending of $4.1 billion.
“The internet is going to revolutionize the business of video distribution,” said AMR president Tom Adams. “But in all the excitement about product launches by Wal-Mart, Amazon and Apple, people are getting giddy about how fast it will happen. We felt it was time to develop a rational set of projections, analyzing the ad-supported and download-to-own markets for both movies and TV shows in light of what the industry has learned in the past three decades of video distribution shifts.”
AMR’s analysis points to a period of experimentation 2007-2009, during which the ad-supported model will predominate. But, as significant numbers of homes connect their TVs to the internet, consumer spending on downloaded movies and TV shows should expand rapidly and exceed ad spending substantially by 2011.
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