Accustream Research
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February 18, 2004

ACCUSTREAM RESEARCH DATA SHOWS INTERNET VIDEO STREAMS GREW BY 104% IN ’03 TO OVER 7.8 BILLION

Silicon Valley, CA Streaming media registered strong growth in 2003, with total video streams up by 104% to 7.8 billion and aggregate tuning hours for Internet music radio 53% higher compared to ’02.

Some 78% of video streams served were viewed at broadband rates, according to the annual market report published by AccuStream Research.

The report, Streaming Media 2003: Brand, User and Audience Share Analysis, provides a detailed market analysis of the year in streaming media, with extensive data by audience type, daypart, content category, bit rate, site, network, aggregator, and includes media consumption patterns of high-speed users, forecasts and historical comparisons.

For example, broadband streams viewed by unique user per month rose to 10.2 in ’03 compared to 6.9 in ’02, a 47.8% increase.

The increase in residential broadband users, combined with an already media savvy group of high-speed users at work, plus better premium content and more sophisticated media players helped power robust growth.

“Broadband users both at work and at home are driving growth in streaming media,” according to AccuStream’s director of research Paul A. Palumbo.

“Whether content is accessed through free or ad-supported sites like Yahoo’s Launch.com property, or subscription destinations such as Real Networks’ SuperPass service or AOL Broadband, people are watching and listening more often, and for longer periods of time.”

“Length of view and total views in streaming video segment were up significantly in 2003, primarily because the streaming experience has become more modular in format, with video clips now running back-to-back, an Internet version of television.”

In terms of content popularity, music videos captured 33% viewing share, followed by news at 28% and sports 17%. The top ten streaming video sites averaged over 400 million streams per month alone in ’03, an all time high.

Following a year of contraction in ’02, Internet music radio, represented in large part by brands such as AOL, Yahoo, MusicMatch and Real Networks not only grew the size of the market, but also captured a dominant share of tuning hours.

AccuStream 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

Accustream Research
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