According to a recent Strategy Analytics webinar, paid video will overtake free video online this year. Digital media analyst Martin Olausson believes that it will top it by about $800 million before the year ends.

He states that paid video will reach $3.8B while free video will only reach $3.5B and that growth will continue at an annual rate of 38% into 2012. Martin also said that he believes free video will grow at 37% per year in the same period while paid will grow at 39%.

"The economic downturn and diminishing advertising budgets have increased the focus on consumer paid content on the web in the last six months," said Martin Olausson, Director of Digital Media Research at Strategy Analytics. "Increased consumer awareness and uptake of services, such as Netflix WatchNow and Xbox Live Video Store, in combination with new services such as the TV Everywhere initiative announced by Comcast and Time Warner Cable will also help drive the paid online video segment in the coming years.”

What do you think?

Here's the link to the 21st Century Consumers & the Future of Digital Media webinar.

  • Gerry Grant

    Hey whatever the % it is paying more so it is less content being paid more.

  • danzil

    Yes, i was sure that it was going to happen on some time...videos are widely used and many people use it for different purposes. If video marketing and videos are available for free then i am sure that many people are going to make the full use of it. Nice idea and i am sure that it will work a lot.

  • Bill Cunningham

    Mark -

    This is a semantics issue, but let's throw this out there - all video on the web in some way, shape or form is "paid video." Its distribution may not be, but the good video producers out there are getting paid for their work in some way.

    Again, it's a semantics issue but I think its worth bringing up.