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Online media services set to explode

The emerging online media services market — which allows broadband consumers to legally obtain music and video over the Internet — is set to generate nearly US$7 billion in revenues by 2008, according to Online Media Services: Forecasts, Business Models and Analysis, newly published by Digital Tech Consulting (DTC). Though revenues from online music and movies/video totaled just $250 million in 2003, DTC’s research shows exponential growth, driven by a variety of new revenue streams, including premium subscription and per-unit content sales. DTC estimates that online media sales over the next five years will be dominated by per-unit content sales, such as the Apple iTunes Music Store model.

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