Happy New Year!

Undeniably, 2007 was an exciting year for digital media. As we enter 2008, we continue to witness the explosive growth of the next phase of the Internet’s lifecycle – multimedia.

In 2007 YouTube—then later in the year Google by association—stood as the archetype for a new age of user-generated content and viral videos. The number of people engaging with video online soared and virtual communities of every shape and size attracted users and investors as social networking established prominence as an online activity. Presidential candidates, their supporters and detractors jumped on this trend having realized the potential of such networks and social sites to spread their messages, videos, and sway voters—particularly younger constituents. As multimedia content flooded the Internet so too did the advertising dollars, pushing Newspapers and other traditional media to reexamine and reshape their own online presence.

At the end of 2007, users spent forty-five percent of their time online consuming content, and 77 percent of unique users consumed online video.

The revenue opportunities for multimedia online are currently red hot—video advertising is predicted to increase from $700 million in 2007 to $4 billion by 2011, according to eMarketer—as companies continue to look for powerful ways to impact the growing online population. Thus far however, major media companies have struggled to turn their video assets into large revenue streams online. The online “video value chain” will continue to take shape in 2008 as more companies bring creative solutions to questions of content production, delivery, discovery and consumption. This year will bring even greater innovation to the Internet video space as content producers and consumers negotiate the evolving sphere of online multimedia.