WoW! Nice growth, and a good revenue stream for broadcasters.

With the coveted 18- to 35-year-old consumer demographic well-versed in online video, the proliferation of Internet-connected televisions will result in $3 billion in streaming-related revenue by 2013, according to a new report.

Scottsdale, Ariz.-based In-Stat said 40% of young adult U.S. households now view Internet video on the TV at least once per month. Within five years, the number of domestic broadband households viewing Web-based entertainment will grow to 24 million.

Already, 29% of 25- to 34-year-olds with video game consoles use the devices to watch streaming video off the Internet.

TV networks and pay-per-view operators see Web-based television as additive to VOD, but that it would ultimately force a complete restructuring of current video services, including content type.

“Once Web-to-TV video becomes simple and convenient, mass consumer adoption will follow quite rapidly,” said Keith Nissen, In-Stat analyst. “Our primary research shows that users want a variety of their consumer devices to enable a web-to-TV video experience.”

http://www.homemediamagazine.com/streaming/report-web-tv-streaming-revenue-reach-3b-2013-15599

Another take on the report.

U.S. consumer spending on Web-to-television video-streaming services will jump almost fivefold within the next four years, as more people buy Internet-connected TVs to take advantage of a broadening range of digital-content services, according to two recent reports.

Consumers will spend about $2.9 billion on video content that’s streamed from the Internet to TVs in 2013, up from about $600 million this year, research firm In-Stat said in a report today. By 2013, about 24 million broadband-connected households will regularly watch online videos on their TVs, up from about 2.5 million this year, according to In-Stat.

“By 2011, Web-enabled TVs or set-top boxes will make it so simple and convenient that mainstream households will adopt Web-to-TV video viewing,” said Keith Nissen, principal analyst at In-Stat. “When this happens, pay-TV operators and content producers will realize they must offer both broadcast and Web user experiences to compete with over-the-top video suppliers.”

With the number of online-video users expected to grow by about a third to about 160 million between 2008 and 2012, content distributors ranging from Internet-based players YouTube and Hulu to such retailers as Amazon.com, Blockbuster and Netflix are both anticipating and fueling such rapid growth rates by widening their inventory of digital titles, as more electronic components allow streamed videos to be played directly onto TV sets.

With the broadening of online-video content, demand for TVs that can be connected directly to the Internet is expected to jump within the next few years, the Arlington, Va.-based Consumer Electronics Assn. said in a report last week. About 3.5 million U.S. consumers will most likely buy an Internet-connected TV within the next year, while another 11 million will seriously consider it, according to the CEA.

“Consumers are currently watching significant Internet-delivered content and given an Internet-connected TV, we assume much of this would move from the computer to the TV,” said Shawn DuBravac, economist with the CEA.

http://www.videobusiness.com/article/CA6656273.html

Yet more coverage and analysis of the report!

More than 40% of U.S. adults under 35 are already viewing Internet video on the TV at least once per month, according to research firm In-Stat, which predicts that revenue from Web-to-TV streaming services will grow to $2.9 billion in 2013.

Within five years, the number of U.S. broadband households viewing Web-to-TV content will grow to 24 million and 7.4 million households will use PCs to stream Web-to-TV content, In-Stat estimated.

"Once Web-to-TV video becomes simple and convenient, mass consumer adoption will follow quite rapidly," In-Stat analyst Keith Nissen said. "Our primary research shows that users want a variety of their consumer devices to enable a Web-to-TV video experience."

Big MSOs have become increasingly concerned that free, ad-supported online video - as embodied by Hulu.com and other services - could spur cable TV subscribers into "cord cutting."

To sweeten the subscription-based TV pot, Comcast, Time Warner Cable and other operators are looking to launch "entitlement" services to video subscribers this year that would allow customers to access otherwise unavailable cable content securely. Last week Time Warner Inc. said it would begin trials of its "TV Everywhere" online-distribution initiative with affiliates in the second half of 2009.

http://www.multichannel.com/article/231346-Web_to_TV_Video_Services_To_Hit_2_9B_By_2013_In_Stat.php