Research firm iSuppli estimates the Internet TV market will almost 14-fold from $422.7 million in 2006 to $5.79 billion in 2011:
iSuppli defines Internet TV as professionally produced and distributed mass-market video that is monetized via advertising and distributed through broadband Internet connections.
The Web is quickly growing into the world’s largest on-demand, interactive video library. The Internet also is evolving into the most ubiquitous video distribution platform ever known, stated iSuppli.
While the early market for Internet TV delivered to PCs has created growth and excitement, the real disruptive opportunity is yet to come. As more consumer electronic devices like TVs, DVD players, game consoles, iPods and portable gadgets become web-connected, Internet TV will leap from computer screens into the consumer’s primary media environment: the living room TV.
Among the most disruptive changes in decades, Internet TV poses both challenges and opportunities for companies involved in the video distribution value chain. Content owners face the trade-off of "reach" versus "control," as they navigate this new distribution channel. Video network operators face the challenge of both a new way to reach consumers, as well as a new competitive threat that could threaten their long-term position in the market. Meanwhile, a variety of Internet portal companies, content delivery networks, software platform companies and other technology providers embrace the revenue opportunity.