Expansion of Online Video Drives Network System Revenues
Yesterday, we mentioned an analyst’s forecast that there won’t be much ad revenue from the explosion in user-gen video and we know the content community has yet to see major returns. At least one sector is doing well, as AP reports: broadband network equipment makers like Cisco Systems. These companies are experiencing greater demand from service providers upgrading their networks to accommodate the extra internet traffic from surging amounts of video. An estimated 210 million people have broadband subscriptions worldwide, and some 40 to 50 million new subscribers are expected to sign on each year, according to networking and telecommunications industry researcher Dell’Oro Group.
Greater broadband adoption has led to greater use of video content, the report notes, adding that in 2006, the market for service provider routers was $5.5 billion, a 26 percent increase over the year before. Another analyst notes that Cisco
What's the view on sites like Brightcove? It's not quite "user generated" in the crude and rude style of YouTube, but it's still user-generated content. It seems to have a bit of an advertising based model to it, based on pre-roll ad views. I think it has some great potential, but it is in such a volatile space. 2007 should see some very interesting maturation in this whole online video space. imo Brightcove is well positioned to emerge at the top when the smoke starts to clear and a revenue model begins to emerge.