Press Release

FOR IMMEDIATE RELEASE

Date: June 6, 2001
Contact: David Cole, dcole@dfcint.com
(858) 780-9680

STREAMING ADVERTISING MARKET FORECASTED TO BE $138 MILLION IN 2001

According to a new report from DFC Intelligence, streamed advertising supporting audio and video programming online is forecast to generate $138 million in 2001. However, advertising is expected to be in less than 10% of the streams served.

The report’s author, Paul Palumbo, maintains the relatively small size of streaming advertising parallels revenue growth in other media. "Cable TV advertising was worth only $50 million in 1980. Today it is worth over $13 billion," notes Palumbo. "There continues to be substantial growth in streaming usage for both audio and video programming, and these are loyal users. Because advertising in streaming media can be a very effective way to reach a highly targeted and qualified audience, we see strong long-term growth potential for this market, particularly for cross-platform brands."

The report predicts that, over the next few years, there will be a major change in the online advertising market. Rich media advertising is forecasted to surpass other forms of online advertising within five years. Other report conclusions:

• About 63% of Internet audio broadcasters have actually deployed, or have the capability to deploy, in-stream advertising.
• About 24% of video-centric destinations and sites have deployed ad-insertion capability.

• There are a total of 1.8 billion audio avail opportunities per month, with CPMs ranging from $5-$60.
• There are an average of 165-185 million video avail opportunities per month, with CPMs ranging from $30-$120. Nevertheless, in-stream video ads are forecast to only represent about 30% of total streaming advertising this year.

The 300-page report, Streaming Ad Insertion and Commerce, contains detailed data on total usage, number of avails, avail sell-out and CPM ranges for hundreds of sites. There are numerous case studies and a detailed analysis of ad buying metrics. For a table of contents to the report send email to dcole@dfcint.com.

DFC is also pleased to announce the launch of the Streaming Avails Report (SAR), a monthly research service that details media buying and selling in audio/video streaming. DFC Intelligence is a research firm focused on interactive and digital entertainment. A more complete analysis of the research can be found at www.dfcint.com/dbpwebcasttrack or www.dfcint.com.

KEYWORD: INTERACTIVE / MULTIMEDIA / INTERNET / ENTERTAINMENT / WEB / CONSUMER ELECTRONICS / BROADCASTING / VIDEO / COMMUNICATIONS