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Online Video Traffic Will Be Higher than Expected, Says Skytide

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Online video analytics company Skytide has released a white paper called "7 Online Video Trends to Watch in 2012." Its chief prediction is that the already strong projections of online video growth for 2012 are still too low.

After sampling its own customers, Skytide has concluded that online video traffic will grow over 50 percent annually in the near term. That will lead to a "capacity crunch" even greater than the industry is expecting. Communications service providers will face high costs to meet the demand of over-the-top video delivery, the report says.

The white paper also predicts that federated CDN will become a reality in 2012, the use of adaptive bitrate delivery will increase, IPTV and MSOs will develop OTT services, and multiple-screen viewing will become commonplace.

Content owners will be happy to read the prediction that online video ad budgets will soar in 2012. The white paper references an Adap.tv and Digiday finding that online video budgets will increase by 27 percent next year. Skytide sees this creating a virtuous circle, where more ad spending leads to stronger original online video content, which in turn leads to more ad spending.

"The year ahead promises to be full of twists and turns for online video and the digital media supply chain that serves it," says Skytide president and CEO Michael O'Donnell.

The full report can be read online for free.

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