STREAMING SUBSCRIPTION AND DOWNLOAD MEDIA REVENUE UP BY 109% IN '05 TO $1.4 BIL.

AccuStream: Streaming subscription and download media is forecast to reach $1.378 billion in 2005, up 109% over 2004, paced by music services enjoying revenue growth of 397% in 2004 and another 154% in 2005.

The total market is forecast to reach $2 billion in total revenue in 2006, with music, sports and entertainment subscription and download revenue leading all content categories.

Overall, streaming media subscription and download revenue grew by 150% from 2003 through 2004, 109% from 2004 through 2005 and is currently forecast to increase by another 45% in 2006.

Music (streaming and download) has been the largest content category online from 2003 through the present. Subscription music services actually led download media revenue in ‘03, but positions reversed in 2004, maintained that leadership position by even wider margin in 2005 and forecast to do so again in 2006.

The download side of the business is forecast at $832 million in 2005, with streaming subscriptions at $237 million.

Major brands such as Apple, Yahoo, Real Networks, AOL (MusicNet on AOL and iTUNES on AOL), MLB, NFL, NBA, NASCAR, StarzTicket, Movielink and many more are analyzed inside this report.

Smaller independent services (including both Internet radio, streaming and download video services) are also included.

Subscriber growth across a range of subscription services in 2005 have been driven by more relevant and customized product offerings better tailored to what subs have utilized in the past, including complementary services, expanded media player capabilities and additional subscription options that include mobile and unlimited pricing models.

Promotion is also as important as reaching subscribers willing to pay for content, convenience and portability. Witness the new marketing and promotional relationship between ESPN and MLB. These two brands have a long-term contextual relationship between viewers and content and that transcends mediums.

Subscription Streaming and Download Media: Revenue and Market Share by Service 2003 – 2006 Publ 20051019