The great thing about forecasts is that no one remembers the exact amount when the future finally rolls around. Perhaps that is why we take Parks Associates’ prediction that the annual US revenues from Internet video services will top $7 billion by 2010 with a grain of salt. It is a bold prediction, and is predicated on the growing popularity of Internet video advertising.
In 2007, approximately 85% of revenue will be from advertisements attached to user-generated content and television and news streams. By 2010, services for renting and downloading TV shows and movies will account for nearly 40% of total revenues.