• May 17, 2007

ABI Research reported that Internet video to TV solutions will deliver $1.5 billion in service revenue by 2012, led by video game consoles, "because of their close proximity to the TV, large hard drives, and the high penetration of online services among gamers."

For now, however, only 8% of those purchasing Internet-delivered video use gaming consoles for playback, according to the research, which is titled "Over-the-Top Internet Video to the TV." The vast majority (71%) view the content on PCs, and another 16% burn it onto a DVD and watch on a TV set.

The $1.5 billion market in hardware bridging the Internet to the TV will be vied for by hardware vendors in the gaming console, media adapter, and set-top box space, such Apple, Netgear, and Sony, ABI said. In its research, ABI found that 12% of today's online consumers have purchased some form of Internet-delivered video content.