September 17 , 2002

ACCUSTREAM RESEARCH REPORT SHOWS FIRST HALF ’02 VIDEO STREAMS UP 65% AT 1.82 BILLION SERVED

Silicon Valley, CA – During the first six months of 2002 total video streams served across entertainment, news and finance content categories reached 1.82 billion, according to a new report by AccuStream iMedia Research.

The research, available now in AccuStream’s Half Year 2002 Growth Analysis market report, contains extensive historical and current data on how growth by audience segment, site, network, channel and event pushed up total streams accessed by 65% compared to the same period in 2001.

Broadband streams accounted for 62.9% of total streams served, paced by AOL’s AOL+ platform and Real Networks’ RealOne subscription service. Narrowband streams grew at a rate of 10%.

High-speed users accessed a total of 8.9 video streams per month per unique user, compared to 6.9 video streams in 2001, a 29% increase.

“The move to subscription models by major streaming brands like CNN, CNET, Fox Broadcasting, ABC and others slowed the overall growth of streams by 25%, ” noted Paul A. Palumbo, Research Director at AccuStream.

“The guarantee of both licensing and a cut of subscription revenue, however, encouraged those major brands to make more and better—often exclusive--content available, which has attracted more subscribers to pay various services, and streams served there are growing substantially.”

Streams accessed on independent, ad-supported sites such as Launch (owned by Yahoo), The Feedroom and IFILM have also grown considerably. In addition, Hollywood studios have been successful with brand extension online through a series of distribution partnerships. Film trailers now account for 51% of all film-related streams.

The report also details how Internet radio usage averaged 83 million aggregate tuning hours per month during the first half of 2002. Annual growth forecasts for Internet radio are in the 70% range, according to the report.

AccuStream iMedia Research publishes the monthly reports iBroadcast Stream Report, iBroadcast Avails Report, iBroadcast Wireless and Mobile Content Report, plus other annual and semi-annual streaming media reports with extensive data and analysis.

Contact: Paul A. Palumbo, ppalumbo@accustreamresearch.com
(831) 393-1953