Streaming Media - October/November 2007 - (Page 68) STREA A quick appraisal of the current internet universe makes it clear that there is a tremendous opportunity for growth in international streaming. When that opportunity will actually become a reality is a very complex question. Here is a snapshot of the current internet landscape: • There are about 1 billion people on the internet today. • Half of them live in North America or Western Europe. • The other half lives “everywhere else.” • North America and Western Europe represent less than 1 billion people. • “Everywhere else” represents more than 5 billion people. • North America and Western Europe have close to 70% broadband penetration. • “Everywhere else” combined has less than 10% broadband penetration, but it’s growing rapidly. So if the international growth opportunities are so obvious, why are media companies confining their digital efforts to certain geographic areas? Several factors contribute to both the growth of opportunity in emerging markets and the delay of streaming media expansion into these markets. This article asks the experts to share their knowledge of global digital media as well as the challenges companies will face trying to enter new markets. Indicators Most of the experts we spoke to agree that the main indicator of future opportunity for streaming media is the exploding broadband growth rates in emerging and developing markets. Arne Rees, VP of international development for ESPN, tells us that “South America is about two to three years behind the U.S., Europe is on par with us, and Japan and Korea are way ahead of us.” Ben Borakas, head of ad operations for JumpTV, adds that “while overall penetration in emerging markets might be small, year-over-year growth is huge and exciting. Video is going to be a huge driver in these markets.”
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