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The Bandwidth Debate: Video and Net Neutrality

Published by: eMarketer

Published: Oct. 1, 2008 - 9 Pages


Table of Contents


Executive Summary

US Online Video Advertising Spending, 2007-2013 (millions)

The eMarketer View

Who Pays?

The Video Traffic Boom

Monthly Consumer Internet Traffic Worldwide, by Segment, 2006-2012 (petabytes)

Monthly Consumer Internet Traffic Worldwide, by Segment, 2006-2012 (% of total and petabytes*)

Monthly Consumer Internet Traffic Growth Worldwide, by Segment, 2007-2012 (% change and CAGR)

Average and Peak Internet Traffic and Internet Bandwidth Growth Worldwide, 2005-2008 (% change)

ISP Tactics

US Consumers' Attitudes Regarding ISPs Capping or Metering Internet Bandwidth Usage, August 2008 (% of respondents)

US Broadband Households and Penetration, by Access Technology, 2007-2012 (millions and % of total households)

Effects on Advertising

US Consumers' Familiarity with Gigabytes as an ISP Billing Metric for Internet Bandwidth Usage, August 2008 (% of respondents)

Response and Solutions

Endnotes

097113

US Online Video Advertising Spending, 2007-2013 (millions)

095938 097580 097581

Monthly Consumer Internet Traffic Worldwide, by Segment, 2006-2012 (petabytes)

Monthly Consumer Internet Traffic Worldwide, by Segment, 2006-2012 (% of total and petabytes*)

Monthly Consumer Internet Traffic Growth Worldwide, by Segment, 2007-2012 (% change and CAGR)

Related Information and Links

Related Links

Contact

Report Contributors

Abstract

Video is creating huge increases in bandwidth usage. It currently generates more traffic in the US than was transmitted across the entire Internet backbone in 2000. While the Internet is not about to collapse, as video becomes the primary online delivery vehicle for entertainment, news and sports, the system will strain.

The Bandwidth Debate report analyzes the impact of the growth of online video content on the Internet transmission backbone, its availability and cost.

Looking at the future of the Internet, none of the players seem happy. ISPs insist that the costs of building out Internet capacity should not fall solely on them. Further, the proliferation of professional video content online—mainly TV shows and full-length movies—threatens the business model of cable companies, who are also major ISPs in most of the US.

On the other hand, companies invested in the TV business (networks, studios and cable providers) as well as major Internet players (Google, Microsoft and Yahoo!) and smaller sites all hope to carve out a share of the potential profits of video—and they are nervous, too.

In that light, the debate over network or Internet neutrality—Net neutrality, for short—is a power play, with involved parties using bandwidth issues as negotiating tactics for divvying up the pie.

Of course, as corporations scramble, consumers could be collateral damage. That is because several ISPs are looking to limit their customers’ bandwidth usage through techniques such as monthly download caps (often called throttling) and differentiated service tiers. The problem could even spill over to online video and advertising.

Key questions “The Bandwidth Debate” report answers:
  • How does the growth of online video shape the Net neutrality battle?
  • How much does video strain bandwidth capacities?
  • How could changes in ISP service offerings hurt online advertising?
  • How will government involvement affect Internet service offerings?
  • Can the ground rules for Internet usage be clarified?
  • And many others…
eMarketer Reports—On Target and Up to Date
The Bandwidth Debate report aggregates the latest data from international technical, marketing and communications researchers with eMarketer analysis to provide the information you need to make smart, timely business decisions.

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