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February 16, 2006

ACCUSTREAM RESEARCH: INTERNET VIDEO UP BY 50% IN '05 TO OVER 17.9 BILLION STREAMS SERVED

Monterey, CA. Streaming media clocked another strong growth year in 2005, with video streams served up by 50% to 17.95 billion and aggregate tuning hours for Internet music radio 43% higher compared to ’04.

Broadband drove the video segment, with 85% of streams served viewed at 100 Kbps rates and above, according to a report published by AccuStream Research.

The report, Streaming Media Market Growth: 2005 – 2010 provides detailed full-year streaming media usage statistics and market analysis for 2005 by audience demo, daypart, content category, bit rate, site, network, aggregator, and includes media consumption patterns of high-speed users, forecasts and historical comparisons.

Broadband streams viewed by each unique user per month were 11.9 for ‘05, a 14% dip from 13.9 in 2004, attributed to a larger pool of broadband video offerings launching in 2005, such as MTV Overdrive, CNN and VH1 VSpot.

Those offerings were launched with marketing and promotional support, and began building audiences immediately. Music was once again the top video category online, with 45% viewing share.

The increase in residential broadband users, more ad-supported premium content, habitual work and home high-speed users, plus more sophisticated media players that enable playlisting combined to drive continued growth in ‘05.

“The largest streaming video networks continue to break out along major Internet media lines, including Yahoo, Real Networks and AOL,” noted Paul A. Palumbo, research director at AccuStream.

“But we have also seen the emergence of a new group of successful independent video publishers such as Break.com, StupidVideos.com Roo and VideoDetective accounting for significant industry growth.”

“In addition, syndication agreements between large content brands such as FoxSports and MSN Video, CBS and ABC with AOL, along with ESPN and high-speed network providers suggests streaming media is following a maturation path carved out by major broadcast, cable and satellite distribution platforms.”

Internet music radio represented by brands such as AOL, Yahoo Music, and Rhapsody, Live365, Clear Channel and aggregator networks generated monthly tuning hours in excess of 257 million.

AccuStream Research publishes the monthly reports iBroadcast Stream Report, iBroadcast Avails Report, iBroadcast Mobile Content Report, and numerous other annual streaming media reports with extensive market data and expert analysis.

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

Accustream Research
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