Table of Contents

• Executive Summary
  
• Methodology
  
  • Years of Experience
    
  • Experienced Team of Analysts
    
  • Methodology
    
    • Previously Issued Reports That Provide Useful Information
      
• What A Difference A Year Makes!
  
  • Subscription Fees for Video Services Are Going Down, Not Up
    
  • Advertising is Likely to Supplement Subscriptions
    
  • Consumer Video Services Via the Internet Will Still Help Drive Premium Services
    
  • Video Over the Internet Provides Many Benefits
    
    • Online Video Services Provide Detailed Information About Each Program
      
    • Interactive Features Enhance the Viewing Experience
      
    • URLs and Links to Background Information Keep Viewers Involved For a Longer Period Time, Making Premium Video Services More "Sticky"
      
    • Really Simple Syndication (RSS) Creates Easy-to-Use Push Services for Content
      
    • Text And Graphic Web Logs (Blogs) Have Transformed Into Audio Podcasts
      
    • Audio Podcasts Will Give Way to Video Casts That Are Supported By Advertising
      
    • RSS Will Be Useful For News, Weather, Sports & Music Video Services
      
    • A Sampling of RSS Aggregators
      
  • Video Search Capabilities Make Video Clips More Accessible and Will Build Momentum
    
  • Premium Web Services With Video Will Become Stronger
    
  • Personalization Is Driving Online and Mobile Growth and Reducing Churn Among Subscribers Who Are "Invested" In a Service
    
  • Virus Protection and Data Security Are Becoming Vital
    
  • Parental Controls Protect Younger Viewers
    
  • Search Capabilities Are Driving Strong Ad Revenues
    
  • Video As An Integral Part Of Premium ISP Services Will Become a "Killer App" to Sustain Subscriber Growth
    
• The "Freckle Effect" Appears Again-Each Region Will Develop Independently
  
  • The "Freckle Effect" Illustrates the Independent Geographical Markets For "Consumer Media and Content"
    
• Market Dynamics of Premium Video Subscription Services On the Internet
  
  • Advertising and Search Are the Key Drivers Going Forward
    
  • Online Music Sales Provides a Taste Of What May Happen With Video
    
  • MSN Premium
    
  • AOL Morphs Into a Content Provider
    
  • Apple Adding Video Podcasts to iTunes
    
  • Yahoo! Targets Hollywood Content Rights
    
  • Google Developing Video Search Capabilities
    
  • Real Networks is Still The Little Engine That Can
    
  • Blinkx is Indexing Video for RSS Delivery
    
  • Narrowstep's TV-Station-In-a-Box
    
    • Walled Gardens Re-Shape the Idea of Pushing Content
      
      • Key Ingredients: Contracts for Content-Ease-of-Use for Subscribers-a Broadband Service As a Strategic Partner
        
  • thePlatform™-Video Optimization
    
  • Synacor-Video Content Aggregation and More
    
    • The PointCast Concept Re-Awakens an Industry
      
  • Akimbo-Pushing Internet Video to Your TV
    
• Four Categories of Video Services and Two Business Models
  
  • Four Categories of Stand-Alone Video Subscription Services
    
  • Premium ISP Services
    
  • Sports Related Services
    
  • Movie & TV Services
    
  • Other Services-Including Music Video, Video-Mail and Video Calling
    
  • Stand Alone Versions of Each Category
    
    • We Combine Subscriptions and Pay-Per-View Revenues As "Subscriptions" to Simplify the Math
      
  • Partnerships and Revenue Sharing Between Premium ISP Services and the Other Three
    
• North America By Category
  
• Europe By Category
  
• Asia By Category
  
• ROW By Category
  
• Worldwide Summaries By Category
  
• Category Summaries By Region
  
  • Premium ISP Subscribers By Region
    
  • Premium ISP Revenues By Region
    
  • Sports Related Subscribers By Region
    
  • Sports Related Revenues By Region
    
    • Percent of Total Sports Revenues Due to Revenue Sharing With Premium ISPs
      
  • Movie & TV Subscribers By Region
    
  • Movie & TV Revenues By Region
    
    • Percent of Total Movie & TVs Revenues Due to Revenue Sharing With Premium ISPs
      
  • Other Video Service Subscribers By Region
    
  • Other Video Service Revenues By Region
    
    • Percent of Total Other Video Service Revenues Due to Revenue Sharing With Premium ISPs
      
  • Total Stand-Alone Subscribers By Region
    
  • Total Adjusted Revenues By Region
    

List of Tables

• Table 1. Worldwide Annual Value of Online Video Subscription Services
  
• Table 2. Annual Subscribers for Premium Video Services By Category-North America
  
• Table 3. Typical Annual Subscription Revenue By Category-North America
  
• Table 4. Annual Subscription Revenues By Category for Stand-Alone Video Services-North America
  
• Table 5. Approximate Amount of Revenue Shared By Premium Services With Sports, Movie & TV, and Other Video Services-North America
  
• Table 6. Adjusted Annual Revenues By Category-North America
  
• Table 7. Annual Subscribers for Premium Video Services By Category-Europe
  
• Table 8. Typical Annual Subscription Revenue By Category-Europe
  
• Table 9. Annual Subscription Revenues By Category for Stand-Alone Video Services-Europe
  
• Table 10. Approximate Amount of Revenue Shared By Premium Services With Sports, Movie & TV, and Other Video Services-Europe
  
• Table 11. Adjusted Annual Revenues By Category-Europe
  
• Table 12. Annual Subscribers for Premium Video Services By Category-Asia
  
• Table 13. Typical Annual Subscription Revenue By Category-Asia
  
• Table 14. Annual Subscription Revenues By Category for Stand-Alone Video Services-Asia
  
• Table 15. Approximate Amount of Revenue Shared By Premium Services With Sports, Movie & TV, and Other Video Services-Asia
  
• Table 16. Adjusted Annual Revenues By Category-Asia
  
• Table 17. Annual Subscribers for Premium Video Services By Category-ROW
  
• Table 18. Typical Annual Subscription Revenue By Category-ROW
  
• Table 19. Annual Subscription Revenues By Category for Stand-Alone Services-ROW
  
• Table 20. Approximate Amount of Revenue Shared By Premium Services With Sports, Movie & TV, and Other Video Services-ROW
  
• Table 21. Adjusted Annual Revenues By Category-ROW
  
• Table 22. Annual Subscribers for Premium Video Services By Category-Worldwide
  
• Table 23. Adjusted Annual Revenues By Category-Worldwide
  
• Table 24. Annual Premium ISP Subscribers By Region
  
• Table 25. Adjusted Annual Revenues for Premium ISP Subscribers By Region
  
• Table 26. Annual Sports Related Subscribers By Region
  
• Table 27. Adjusted Annual Revenues for Sports Related Subscribers By Region
  
• Table 28. Percent Of Sports Revenues Due to Revenue Sharing With Premium ISPs
  
• Table 29. Annual Movie & TV Related Subscribers By Region
  
• Table 30. Adjusted Annual Revenues for Movie & TV Subscribers By Region
  
• Table 31. Percent of Movie & TV Revenues Due to Revenue Sharing With Premium ISPs
  
• Table 32. Annual Other Video Service Subscribers By Region
  
• Table 33. Adjusted Annual Revenues for Other Video Service Subscribers By Region
  
• Table 34. Percent of Other Service Revenues Due to Revenue Sharing With Premium ISPs
  
• Table 35. Total Annual Stand-Alone Video Service Subscribers By Region
  
• Table 36. Adjusted Annual Revenues for All Video Service Subscribers By Region

List of Figures

• Figure 1. Comparison of 2004 Report Forecast Showing Gradual Downgrading of Revenue Projections In Our Updated Forecast for This Report
  
• Figure 2. Adjusted Annual Revenues By Category-North America
  
• Figure 3. Adjusted Annual Revenues By Category-Europe
  
• Figure 4. Adjusted Annual Revenues By Category-Asia
  
• Figure 5. Adjusted Annual Revenues By Category-ROW
  
• Figure 6. Annual Subscribers for Premium Video Services By Category-Worldwide
  
• Figure 7. Adjusted Annual Revenues By Category-Worldwide
  
• Figure 8. Adjusted Annual Revenues for All Video Service Subscribers By Region