Video over IP will become the most lucrative and popular premium subscription services offered via the internet, industry watchers predicted today.

Analyst firm In-Stat said that non-adult video content delivered as subscription or pay-per-download will have a worldwide retail value of $2.6bn by 2009.

"The video desires of most consumers will continue to be served by free-to-air broadcast TV, and by pay-TV services like cable and satellite. But a thriving premium video market will develop over the internet," said In-Stat analyst Gerry Kaufhold.

"RSS, audio podcasting and upcoming video podcasting initiatives will drive demand for lots more video on the internet. Apple's announcement that brings ABC's Desperate Housewives onto its iTunes service marks a major turning point for video over the internet."

Recently conducted In-Stat research predicted that companies providing video content will have multiple opportunities to earn revenues by developing standalone web portals that sell subscriptions directly.

Other ways for video to be distributed will involve content owners partnering with portals or search engines and sharing the revenues.

The analyst firm also speculated that video content providers will work with content aggregators to place video offerings into a pool of licensed content, and provide internet video content to pay-TV services.