The digital content industry seems set to explode, new analysis from In-Stat claims.

While it points out that the industry remains in the early experimentation stage of rolling out video services, it says, "they will have some dramatic revenue-generating opportunities in the next five years".

The worldwide market for online content services is expected to expand by a factor of ten, growing from about 13 million households during 2005 to more than 131 million households by 2010, the high-tech market research firm says.

"AOL, Google, Yahoo!, MSN, Apple, major Broadcast TV networks, Pay-TV services and local TV stations are all working on ways to blend their video assets with personalised TV services," says Gerry Kaufhold, In-Stat analyst. "The future of television is slowly being defined online, where the big internet portals are finding ways to blend professional video with their high-touch services that follow consumers from screen to screen during the course of a typical day."

In-Stat believes that worldwide broadband households will more than double between 2005 and 2010, growing from about 194 million in 2005 to more than 413 million by 2010.

The researchers also note that 12.8 per cent of all broadband households today regularly watch online content.