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Online Video to Generate 52% More Revenue Than Shared Hosting by 2010

I came across this Park Associates press release via GigaOm. It says US revenues from Internet video will top $7 billion by 2010. (This significantly exceeds Gartner's April 2006 projection that the North American shared hosting market will reach $4.7 billion by 2010.)

Not coincidentally, Cisco announced a new business group last week called Media Solutions. Cisco execs tell CNet that their goal is to get closer to digital content creators. Yankee Group Analyst Zeus Kerravala agrees with Cisco's vision. The more relevant the company can be to content owners, he says, the more success it's likely to have.

Over the past decade, dedicated hosting providers have worked hard to maintain relevance within the shared hosting community through active participation on Web Hosting Talk, reseller programs for domain names, etc. Given Cisco's new initiative, Park Associates' projections, YouTube's enormous (and rather wealthy) audience, MetaCafe's rumored $200 - $300 million Yahoo! deal... might the online video market deserve some attention as well?

Update #1, via GigaOm - Cisco CEO John Chambers calls video a killer app: "Things like YouTube are just the baby steps of the impact video will have on networks." Are you ready?

Update #2, via eMarketer - US Internet video audience will reach 157 million by 2010. How much of their viewing activity will take place on your network?

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