Think advertising is the only business model for Web video? Nope. Park Associates insists that US consumers will spend $6 billion on video delivered via the Web by 2013, up from just over a billion this year.
We can buy that: Despite the success of Hulu and collapse of Vongo and Clickstar, consumers have shown they’re plenty willing to spend money on video at Apple’s iTunes — even when it’s video that is also available for free. Disney alone says it has sold more than 5 million movies since 2006, and about 1 million since March.
For comparison, eMarketer predicts $1.4 billion will be spent on online video advertising in 2008, growing to $4.3 billion in 2011.
What’s going to make the market take off? When video makes the leap from PCs and iPods to Web-connected TVs. The projections from Park Associates:
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