Online Video Growth Will Be Driven by Portable Devices and Download -to -Burn

New viewing options such as network-enabled video players and download-to-burn will add momentum and broaden the overall market by giving consumers additional choices in how they consume video content.

Online Video Growth Will Be Driven by Portable Devices and Download -to -Burn


Oyster Bay, NY - August 16, 2006 - While 2006 has seen a rapid increase in
consumers' use of online video, spurred by the breakout success of websites
such as YouTube, the vast majority of video content delivered over the
Internet is still held captive on the PC. ABI Research believes that the
over the next five years new viewing options such as network -enabled video
players and download -to -burn will add momentum and broaden the overall
market by giving consumers additional choices in how they consume video
content.

'The percentage of Internet -delivered video viewed on a portable device will
go from just 3% today to 16% by 2011,' says principal analyst Michael Wolf.
'This move to portable viewing will be driven largely by a new class of
devices with embedded networking connectivity and seamless integration with
online video providers. As portable media hardware vendors such as Apple and
Microsoft add networking connectivity to their products, and Sony moves away
from UMD toward network -based video delivery for the PSP, more content will
become portable as it becomes less dependant on the PC.'

Networked portable media players will not be the only reason for increased
momentum in Internet video. Content owners and aggregators are both
expanding available libraries while adding new usage models for consumers.
Recent moves by both CinemaNow and Movielink to allow for download -to -burn
of Internet -delivered video has already resulted in increased adoption of
these services, and ABI Research expects that expanded options such as these
will continue to drive consumers toward the Internet as a source for video
content.

'Download -to -burn and networked portable devices are just two examples of
increased choice for consumers in how they view Internet -delivered video,'
says Wolf. 'ABI Research believes that content companies, rather than
adopting their historical 'hunker down' mentality in the face of new
technology, are increasingly embracing these new usage models as they
grapple with the maturation of the theatrical and traditional home video
market, and become more comfortable with the underlying delivery and content
protection frameworks.'

'Future of Video Sharing Sites, User Generated and Copy -Protected Content'
discusses the challenges faced by YouTube with respect to competing
services, hosting of copyrighted content and its laid -back attitude towards
monetizing its leading position. It also focuses on digital cinema, open
source DRM, and other late -breaking issues. It is the latest update to ABI Research's Digital Media Distribution and Management Research Service, which also contains
research reports, a forecast database, ABI Insights, an ABI Vendor Matrix,
and analyst inquiry support.

Founded in 1990 and headquartered in New York, ABI Research maintains global
operations supporting annual research programs, intelligence services and
market reports in broadband and multimedia, RFID and M2M, wireless
connectivity, mobile wireless, transportation and emerging technologies. For
information visit www.abiresearch.com, or call +1.516.624.2500.

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