ABI: iTunes Ignited Online Video

A new report from ABI Research finds that Apple’s move in late 2005 to sell television episodes and video through its iTunes Music Store marked the “big bang” for online video, although the new distribution channel will still need as long as five years to catch up with traditional avenues.

According to ABI analyst Mike Wolf, “At this year’s CES, gadgets took a backseat to the bevy of announcements by large online and content players. The flood of online content announcements from Google, Yahoo and others shows that after years of hesitation from the larger media players, the market for premium content online is finally beginning to take shape.”

The report cites developments such as Vongo and the Google Video Store, and notes that advertising rates for broadband video impressions skyrocketed during 2005. Furthermore, the online video market is being fueled by traditional media companies increasingly offering top-flight content

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