U.S. On -demand Internet Content Revenues to Approach $9 Billion by 2010

U.S. consumer spending for online entertainment, including on-demand gaming, music, and video services, will grow by 260% in the next five years, according to Digital Lifestyles: 2006 Outlook, a new study from Parks Associates.

For Immediate Release

Contact: Jenny Barrett, Chelsey Tyson
Parks Associates
972 -490 -1113
Email: jenny@parksassociates.com; Chelsey@parksassociates.com

U.S. On -demand Internet Content Revenues to Approach $9 Billion by 2010
Consumer spending for Internet entertainment services to grow 260% in five years; global home network and broadband penetration to grow significantly during same time

Dallas, Texas January 16 2006 - U.S. consumer spending for online entertainment, including on -demand gaming, music, and video services, will grow by 260% in the next five years, according to Digital Lifestyles: 2006 Outlook, a new study from Parks Associates. Driven by broadband usage and innovations in digital entertainment platforms and content services, revenues will grow from $2.4 billion in 2006 to nearly $9 billion in 2010.

"This year will be a watershed for delivering to consumers an array of new entertainment experiences," said Kurt Scherf, vice president and principal analyst, Parks Associates. "Thanks to broadband proliferation and growing cooperation between content producers and other members of the digital entertainment value chain, we'll see significant product and service announcements throughout 2006."

Scherf indicated that the online video market - including such providers as Movielink, CinemaNow, Apple iTunes®, and Akimbo Systems - will be active in 2006, as PC and consumer electronics manufacturers seek to expand their influence by offering more integrated networked solutions to end users.

Digital Lifestyles: 2006 Outlook also includes global forecasts for consumer broadband users, home data networks, and multichannel IP video services ("Telco TV" or "IPTV" services).
• The number of worldwide consumer broadband subscribers will grow from 184 million in 2005 to more than 360 million in 2010;
• The number of households worldwide using data networking equipment will grow from approximately 82 million in 2005 to more than 135 million in 2010; and
• Worldwide subscribers to IP multichannel video services (IPTV) will grow from approximately five million in 2005 to nearly 70 million in 2010.

Digital Lifestyles: 2006 Outlook provides an overview and projections of the key digital lifestyle trends for 2006 and beyond, including services and platforms. For more information about Digital Lifestyles: 2006 Outlook, please contact Parks Associates at 972 -490 -1113 or sales@parksassociates.com or visit www.parksassociates.com.

About Parks Associates: Founded in 1986, Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems. www.parksassociates.com

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