With significant growth in the Chinese market, the forecasts for User-Generated Video (UGV) use and revenue have shifted upward since last year, reports In-Stat. With expectations of higher quality content (e.g. HD video) and increasing file sizes, the demands on bandwidth will likely continue to grow at a faster rate than the number of files/videos served.

“User-generated video (UGV) and the video sharing sites that exemplify this form of content have spread across the globe,” says Michael Inouye, In-Stat analyst. “China is a prime example of UGV’s global reach and appeal, capturing a significant portion of the world market, making it second only to the US. In general, viewing of online video has increased in the US in the past year, although participation is still stratified by age.”

Research by In-Stat found that total worldwide UGV revenue is expected to eclipse $1.19 billion by 2012. One hundred and sixty billion UGV served videos are forecasted for 2012.

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