Fox Interactive Media Inc.'s acquisition of social-networking leader MySpace.com and Google Inc.’s pick-up of online video site YouTube.com last year have garnered much praise from the dealmaking community. If their financial futures aren't already secure, they could be in the next few years. According to a study from ABI Research, consumption of ad-supported and pay broadband video will grow from roughly 300 million consumers today to nearly 1 billion by 2012 and create a multibillion dollar industry in the coming years. The research firm expects pay video adoption to continue to grow through sites such as Apple Inc.’s iTunes, while video “super-portals” such as Joost Operations SA will increase the user base for ad-supported video. With advertising dollars following the consumer online, expect companies that can deliver that content to remain acquisition candidates. Check out the hot startups in this sector featured in Tech Confidential's special report on convergence. —David Shableman

See press release from ABI Research
See June 15 article from TheDeal.com