Internet Marketing

AccuStream Report: Streaming Media Advertising and Subscription Revenue Forecast at $625 Mil. in '04

MONTEREY, Calif.--(BUSINESS WIRE)--June 15, 2004--Subscription and stream-based advertising revenue is forecast to reach $625 million in 2004, and expected to top $864 million in 2005, according to a new report issued by market analysis firm AccuStream iMedia Research.
The report, Streaming Advertising and Subscription: A Complete Market Analysis 2003-2005, forecasts that stream-based advertising (audio and video) will make up 37% of total streaming media revenue in '04, up from 28% in 2003.

With broadband penetration increasing, and those users consuming more of the Internet -- including audio and video -- advertising have been following those audiences online and creating more demand for streaming media inventory.

On the supply side, sites are incorporating a variety of traditional and newly launched ad unit formats and delivery approaches, including pre-roll ads, ads running inside subscription streams, Java video ads that are not tied directly to a requested stream and between-the-page ad units.

The streaming advertising market picked up momentum during the second half of 2003 and advertiser demand carried over into 2004. Upfront sales indicators suggest an even more robust market in the fall of '04 and for full year 2005.

"What's happened over the past two years, is that agencies, rep firms, solutions providers and content sites have determined that as streaming media has grown in reach, it can in fact be supported by advertising. And, broadcast media budgets are targets everyone is aiming for," commented Paul A. Palumbo, research director at AccuStream.

"Brand advertisers want the impact of video messaging delivered to high-speed users. And, in 2004 more branded content moved out from behind subscription services, inventory is increasing and CPMs are holding firm."

"On the Internet radio side, rep firms now pitch inventory using the same reach and listener metrics as on-air radio. With everyone speaking the same language, there is a better chance to attract national advertisers."

As for subscription, streaming and download music services are forecast to make up 39% of the $384 million dollar market in '04, followed by platform services such as SuperPass, and professional sports league content at 24%.

AccuStream iMedia Research (http://www.accustreamresearch.com) publishes monthly streaming media reports, and annual market reports with extensive data, trend comparisons and expert analysis.

Contacts


AccuStream iMedia Research
Paul A. Palumbo, 831-393-1953
ppalumbo@accustreamresearch.com

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