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Business News (more headlines) 08-03-2005

Streaming Advertising And Subscription Media To Reach $950 Mil. In '05

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Streaming media advertising and subscription revenue is forecast to reach $950 million in 2005, based on the latest market analysis report published by AccuStream iMedia Research.

The research report, Streaming Advertising and Subscription Media: 2003 – 2006 includes movie and music download revenue figures for 2003 – 2004, with forecasts for 2005 and 2006.

Combined, the market for streaming advertising, subscription and download media is estimated at $1.36 billion in '05, up 110% over 2004.

This report analyzes market inventory by avail type, including pre-roll, mid-stream, post-roll, embedded units (outside the media player environment), sponsorships, CPMs (which are often blended to account for other synchronized media), campaign sizes, buy/sell dynamics, types of advertisers and product categories.

Sites, services and brands profiled include AOL (video and music radio), Yahoo (audio and video), ESPN, MLB.com, NASCAR.com, Clear Channel's online stations, Live365.com, IFILM, Atomfilms, iTUNES, MusicNet on AOL, Worldnow, WWE, CNN and analysis by rep firms and agencies.

Each inventory type, based on exclusive AccuStream database information, is analyzed by market segment, content category, site, total value in gross ad billings, historical inventory growth rates, sell-out, subscriber analysis for the subscription services, including movies, music, sports, television and download content.

Streaming video advertising is forecast to jump in value by 78% in '05 to $343 million, and streaming audio up by 82% in 2005 to $22 million.

The market for streaming audio ads is 18-24 months behind that of video, even though many radio sites now incorporate pre-roll streaming video before audio streams.

"It began in 2004, but 2005 is truly shaping up to be an exciting one for streaming video advertising, and streaming advertising in general," noted Paul A. Palumbo, research director with AccuStream.

"There are more advertisers in the market, product categories represented range from automotive to technology and telecom, there are repeat buyers, solid click-through results from previous campaigns and a generally clutter-free broadband environment despite the fact that pre-roll units are essentially sold out for the remainder of the year."

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