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'Net TV Will Be Nearly $6B Business By 2011

The market for Internet TV will grow from $422.7 million in 2006 to a projected $5.79 billion in 2011, and although news was the ad-driver for 'net TV in 2006, by 2011 it will be number three behind sports and entertainment.

That's according to a just-released report, Internet TV: Revenue and Network Demands for Online News, Sports and Entertainment Video, from market research firm iSupply.

ISupply defines Internet TV as "professionally produced and distributed mass-market video that is monetized via advertising and distributed through broadband Internet connections."

"As more consumer electronic devices like TVs, DVD players, game consoles, iPods and portable gadgets become web-connected," says the report, "Internet TV will leap from computer screens into the consumer’s primary media environment: the living room TV."

It will also be driven by the proliferation of digital set-tops.

The rise of long-form sports viewing over the more "snack" sized news sampling will require something on the order of 44 times today's bandwidth consumption by Internet TV, says iSupply.

The market will be doninated by North America and Western Europe, says the study, with Latin America and Eastern Europe having no "significant Internet TV penetration through 2011," says the study.