Web-to-TV Video Services To Hit $2.9B By 2013: In-Stat

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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. (The firm is owned by Reed Business Information, publisher of Multichannel News.)

"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.

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