IBM sees the future of online video

By March 7, 2007IPTV, PCTV, TV

Internet killed the TV star 

…..and it is very different from today.

In the paper Navigating the media divide IBM sets out a view of the future that has a lot in common with some of the stuff I have been saying here on The Equity Kicker.

We see the same disruption of the media value chain coming, although they are perhaps less radical than I am.

  • Distributors will come under pressure – this theme runs throughout the report, and it isn’t surprising since the internet is emerging as a cheap substitute for satellite and cable – this chimes with my prediction that Internet TV will mean the end for channels
  • New aggregators will emerge – companies like and TIOTI stand to win big here.  IBM predicts aggregators will have revenues of $50bn by 2010 – there is space for a couple of start up winners in that number!

Interestingly this doesn’t mean that traditional media will die.  It will lose market share for sure, but IBM see it still as a $340bn segment in 2010.

The first paragraph has some good soundbites that put the scale of internet TV into context:

The number of unique visitors to has now surpassed the 50 million mark – something akin to the number of US households that tune into the Super Bowl

Every day consumers around the world watch about 100 million videos on YouTube – putting that number in context, the top 15 British primetime television shows combined attract about 100m viewers, as do the top 4 U.S. shows