RHK, a telecom analyst firm, released a research report predicting the global online entertainment market, which includes services such as IPTV, video on demand, music downloads, games, gambling and adult content, will rise at a 24% compound annual growth rate between 2004 and 2009, reaching $36 billion. In 2005, the global online entertainment market is expected to generate $15.8 billion in revenue. According to their research, video and music will be fastest growing markets over the forecast period.

The growth rate is attributed due to broadband connectivity and availability rapidly increasing. "Broadband connectivity has been a key driver and will gain even more significance in enabling new forms of content services through the introduction of new high-quality digital features that will enhance the user's experience," said Stephane Teral, principal author of the report.



According to Dr. Josette Bonte, Managing Director of RHK's Broadband Content and Video Services Practice: "The next five years will see IPTV come into its own as a new distribution medium with its own new business rules and challenges. We forecast that IP VoD in all its incarnations will total revenues that equal over a third of DVD sales by 2009."

Source: Tekrati