According to a recent report from Jon Peddie Research, the digital content creation market is experiencing continued growth, up 16 percent in 2006.

Two of the fastest developing areas in the multibillion dollar industry are Web video and interactive development.

"We are seeing big shifts in the digital content creation market," said Kathleen Maher, senior analyst at Jon Peddie Research and author of the DCC Report. "For example there have been game changing acquisitions by Adobe with the acquisition of Macromedia and Serious Magic, Autodesk's acquisition of Alias and Colorfront and Google's acquisition of Sketchup and YouTube. The landscape is changing right in front of us all."

The digital content creation business topped $3 billion dollars in 2006 and is expected to rise by another half billion dollars in 2007. The report noted that the professional market is shifting away from proprietary systems to desktop-based mainstream creation systems.

The report said that the overall short-term outlook for all segments of the business are good and that new avenues for distribution such as YouTube and MySpace are helping to create interest in consumer video editing.

Jon Peddie Research is a Tiburon, Calif.-based firm that specializes in multimedia and graphics consulting and research.

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