Written by Laurie Sullivan
Posted Wednesday, July 18, 2007 at 11:00 PM PT

 

The Professionalization of Internet TV

Next New Networks, ON Networks, Revision3, 60 Frames, Vuguru, Telegraph Ave Productions, WatchMojo — what do these companies have in common? They all use Moore’s Law and low-cost distribution over the Internet to disrupt the studio model, in the process building audiences that can rival a small cable channel. They are professionalizing internet TV.

And this business is going to get bigger. iSuppli, a market research firm, projects that professionally produced video will will bring in nearly $5.9 billion in revenues in 2011, up from $423 million in 2006.

At present 3- to 10-minute videos are popular because they can be downloaded quickly over today’s broadband networks, running at typically 3 megabits per second in the U.S., and 8 megabits in other parts of the world. As speeds soar past 20 megabits per second, longer form videos could be downloaded quickly. Longer videos would mean more advertising opportunities.

screenshot10-edit.jpgThe professionally produced video business, including professionally produced and distributed advertising-supported news, sports and entertainment, will account for 79.3 billion streams worldwide by 2011 up from 3.7 billion streams in 2006, iSuppli projects.

Professionally produced Internet TV also has an opportunity to find distribution on new IPTV networks, especially the ones being built by telephone companies. Given the startup activity in the U.S., the report indicates that a substantial portion of Internet TV content will originate in North America and Western Europe

The online video boom is already igniting investment in the back-end and infrastructure companies, especially ones that lower the cost of distribution. Expect many more startups to emerge in the coming year, both on the production and distribution sides.

Nearly $1 billion in venture financing was invested in about 150 video-related started between 2002 and 2006, according to iSuppli. Of that more than $250 million came in the first half of 2006.

Ask Dow Jones VentureOne, which specializes in the finance sector, and they’ll paint a slightly different scenario. Web-video related startups between 2002 and 2006 raised $325 million in venture capital funding. Of that, $98 million, or 30 percent, came in during first half of 2006. And during the first six months in 2007, startups in the space have already raised $111.5 million more.

With help from Om Malik and Liz Gannes.

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Topic: Money & Power, Startups
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Comments & Trackbacks

  1. [...] funnier then 99% of what’s currently on the old tube? NeeTeeVee, in a post today about the professionalizing of internet TV – has the numbers to show that growth of this sector of online content is set for some explosive [...]

    blog of edeoplay.com web video sharing and syndication application on July 19th, 2007 at 7:04 am - Permalink

  2. Thanks so much for the N3 shoutout! We really appreciate it!
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    Jeaux Janovsky on July 19th, 2007 at 9:13 am - Permalink

  3. [...] about the resurgance of professionally produced content’s supremacy in online video. (See this interesting study written up on the industry blog NewTeeVee today, for example.) Professional online video content is [...]

    SplashCast: Channel Yourself Across the Web on July 19th, 2007 at 11:24 am - Permalink

  4. [...] Sullivan at NewTeeVee has a post today about The Professionalization of Internet TV, where she calls out the work many of us are doing, including our friends at Revision3 and Vuguru [...]

    The Next New Networks Blog » Blog Archive » Maybe we’re on to something on July 19th, 2007 at 11:38 am - Permalink

  5. Could be the best article written here @ newteevee. Some substance, numbers and analysis…

    More, please!

    zal on July 19th, 2007 at 1:08 pm - Permalink

  6. [...] Written by Om Malik Thursday, July 19, 2007 at 3:30 PM PT | No comments Next New Networks, ON Networks, Revision3, 60 Frames, Vuguru, Telegraph Ave Productions, WatchMojo — what do these companies have in common? They all use Moore’s Law and low-cost distribution over the Internet to disrupt the studio model, in the process building audiences that can rival a small cable channel. They are professionalizing internet TV. More details here. [...]

    GigaOM The Professionalization of Internet TV « on July 19th, 2007 at 3:30 pm - Permalink

  7. [...] the Fine Print: Terms of Service As online media becomes more professional, it becomes critical to start examining the fine print. Traditionally, entertainers had agents and [...]

    NewTeeVee Reading the Fine Print: Terms of Service « on July 22nd, 2007 at 12:00 am - Permalink

  8. [...] y si alguien lo predice directamente está mintiendo o sabe algo que los demás no sabemos Vía: Newteevee y Blog de Rodrigo [...]

    La Profesionalización de la TV por Internet : Blog Eduardo Collado on July 22nd, 2007 at 1:14 pm - Permalink

  9. [...] Via NewTeeVee [...]

    iSuppli: professionally produced video at nearly $5.9 billion in revenues in 2011 at vidavee.blog on July 22nd, 2007 at 10:12 pm - Permalink

  10. [...] as Laurie Sullivan points out in NewTeeVee, more and more of these companies are using Moore’s Law (the power of microprocessor technology [...]

    ABC Digital Futures » Blog Archive » The professionalisation of internet TV on July 31st, 2007 at 7:26 pm - Permalink

  11. [...] the vlogosphere becomes more professionalized and existing guilds and unions begin to address contract provisions related to web and mobile [...]

    NewTeeVee Solidarity in the Vlogosphere a Pipe Dream? « on August 6th, 2007 at 10:55 pm - Permalink

  12. [...] a raft of companies looking to fill that space, as we wrote last month in an essay about the professionalization of Internet TV. It’s definitely not easy money, but helping talented people negotiate the business world is [...]

    NewTeeVee Startup Watch: For Your Imagination « on August 8th, 2007 at 11:55 am - Permalink

  13. My favorite internet TV station is BlackShip TV

    Billy on August 8th, 2007 at 9:09 pm - Permalink

  14. [...] States la TV via Internet si sta sempre più professionalizzando e può essere parte di business project di più ampio [...]

    Media Alternativi.. » Internet TV: Guadagna Con Le Tue Idee on August 9th, 2007 at 3:47 am - Permalink

  15. I have to say, that I could not agree with you in 100% regarding , but it’s just my opinion, which could be wrong :)

    Daniel on August 10th, 2007 at 8:00 pm - Permalink

  16. [...] Newteevee y Blog de Rodrigo [...]

    La Profesionalización de la TV por Internet en TV en Red on August 12th, 2007 at 4:28 am - Permalink

  17. [...] The Professionalization of <b>Internet</b> TV [...]

    We Review First Internet Steps » HTML Dog: The Best-Practice Guide to XHTML and CSS. on September 20th, 2007 at 7:53 am - Permalink

  18. [...] actual distinctions between all these online video studios, networks, and talent agencies who are professionalizing Internet TV. It’s one of the topics we’ll be addressing at NewTeeVee Live on November 14. Wayne [...]

    DECA Puts a Fine Point on Web Studios « NewTeeVee on September 26th, 2007 at 9:44 pm - Permalink

  19. [...] NewTeeVee The Professionalization of Internet TV « [...]

    Film Maker Daily - Today Top Blog Posts on Film Making - Powered by SocialRank on October 9th, 2007 at 1:04 am - Permalink

  20. [...] 估計到 2011 年線上影音廣告費用將會達到 43 億美金；iSuppli 則是預測 2011 年達到 59 [...]

    Mr./Ms. Days (MMDays) - 網路, 資訊, 觀察, 生活 » Blog Archive » Forrester : 2012年線上影音廣告將成長到 71 億美金 on November 26th, 2007 at 3:32 pm - Permalink

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    James on April 16th, 2008 at 11:01 am - Permalink

  22. This is a excellent article on internet tv, iptv. How do you go about streaming live sports channels?

    Dave on April 25th, 2008 at 12:12 pm - Permalink

  23. [...] The Professionalization of Internet TV Posted by root 1 hour 56 minutes ago (http://newteevee.com) La profesionalizaci n de la tv por internet blog eduardo collado on july 22nd film maker daily today top blog posts on film making powered by if your comment doesn 39 t show up immediately it may have gotten caught in our trusty marketing consulting by ac Discuss  |  Bury |  News | The Professionalization of Internet TV [...]

    The Professionalization of Internet TV | Wood TV Stand on May 31st, 2009 at 4:35 pm - Permalink

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