According to ABI Research online video will have over 1 billion users by 2013. ABI says that the exponential increase will be pushed by improved broadband speeds and availability across the world.
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To be able to offer the increased bandwidth that will be needed by ISPs to serve this much content ABI says that ISPs will change the way they deliver content by caching it closer to the user and peer-to-peer networks.
"The rapid expansion of broadband video creates opportunities across a number of market sectors," comments senior analyst Cesar Bachelet. "A wide variety of actors aim to gain a share of this fast-growing market: not only content owners such as the BBC and NBC Universal, and Internet portals such as AOL and Yahoo!, but also a range of new entrants including user-generated content sites such as YouTube and Dailymotion, broadband video sites such as CinemaNow and Lovefilm, and Internet TV providers such as Apple and Zattoo."
Via ABI Research