Online sales of TV shows, movies and other prerecorded video will become a billion-dollar business in 2007, according to a new report from technology research firm Strategy Analytics.

The report predicts that, by the end of 2007, the market will grow to $1.5 billion. By 2010, global revenue from online video sales, rentals and subscriptions will surge to $5.9 billion, and account for eight percent of total home video industry revenues.

“2007 will be remembered as the year in which online sales of prerecorded video finally become a real business,” comments the report’s author, Martin Olausson, Senior Analyst from the Strategy Analytics Broadband Media & Communications service. “Just like with music, online delivery of video content is now emerging as a viable and increasingly important distribution channel for content owners.”

Nielsen SoundScan reports that sales of individually downloaded digital tracks are up more than 67% over the same period in 2005, accounting for more than 525 million digital downloads; This is 173 million more downloads than 2005’s annual total.

In 2006 to date, 54 tracks have sold more than 500,000 units as opposed to only 22 tracks in all of 2005. None reached that sales mark in 2004.

Digitally downloaded albums have increased more than 100% with 29.7 million YTD in 2006 versus 14.5 million in the same time period in 2005. In 2006 to date, 11 albums have sold more than 100,000 units digitally comparing to only 3 for the entire year in 2005 and none in 2004.

“It is clear that digitally downloaded music is continuing to enjoy tremendous and growing consumer acceptance,” said Rob Sisco, President Nielsen Music.

Nielsen’s numbers appear to contradict information released earlier in the week by Forrester suggesting that digital music sales are stagnating.

Rocketboom founder Andrew Baron has a few choice words about ABC’s new video blog featuring former Rocketboom host Amanda Congdon. He’s also got some interesting points to make about mainstream media’s attempts to clone the success of indie vlogs:

“I’m going to set aside all of the technical problems everyone has already mentioned with the video distribution and the ABC platform – the fact that there are no RSS feeds, the video scrolls have been turned off, one is forced to view long, irrelevant pre-roll ads that outlast many people’s curiosity and especially the closed platform with no mobile or local potential.

The only difference between this video platform and one from say, 1997, is that for this one, the video does play.”

Baron goes on to add that the greatest problem with Congdon’s new project is “the severely expensive resources that are being used for a product that can be much more valuable for a mere fraction of the effort and costs.”

Microsoft invited a small group of influential bloggers to their Redmond campus Thursday for an hour long one-on-one with Bill Gates, as part of Microsoft’s Mix n’ Mash ’07 event.

In doing so, Gates demonstrated how to use bloggers to pwn the media:

• Invite a group of influential bloggers
• Pay their expenses
• Give them free stuff
• Answer some softball questions
• Work in your bullet points in a quotable way

Microsoft paid the bloggers’ travel expenses, treated them to Zunes and other tchotchkas and gave them access to their Chairman. In return, the bloggers published Microsoft’s bullet points and turned Microsoft’s agenda into front page coverage around the world.

Blendtec, a company that makes heavy duty blenders, is using video blogging to sell $400 blenders. It’s also reinventing advertising along the way.

Blendtec makes hardcore blenders – not something that most people would think they need. Ask someone if they’d like to watch a video demonstration about a blender, and they are liable to run for the door.

Create a vlog about a blender that can blend anything, though, and people will be coming back for more.

Blendtec’s WillItBlend video series features Blendtec CEO Tom Dickson using the company’s Total Blender to powderize household objects, ranging from golf balls to a Coke-can smoothie.

Watch what Dickson does to his iPod:

“I love my iPod,” says Dickson, “but I’m ready for the latest!”

Who can argue with that?

Note: After seeing one of Dickon’s blenders destroy an iPod, you may feel the uncontrollable urge to buy an expensive blender. You can also bid on Dickson’s iPod smoothie on eBay.

A new device promises to turn your iPod into a portable recording studio.

The MusicJam mixer is a new mixing and recording device for iPods. MusicJam lets users make their own personal versions of favorite songs by adding their singing and guitar jamming to any song and recording the results. The MusicJam can also be used as a Karaoke machine, letting users download songs and have the words displayed on the iPod for singing and playing along.

“We initially thought it would be more popular with teenage girls,” according to MusicJam’s Tom Sylvester. “But our product trials surprised us: The more enthusiastic group turned out to be teenage boys. We found it popular, too, among middle-aged men trying to recapture their Rock Idol status.”

The MusicJam system includes a microphone, XLR mike cable, iPod connector cable, RCA cables, AC adapter, and a clamp to attach it to a music stand, and retails for $229.

CBS is launching a new music label, with its focus on building awareness for CBS Records’ artists and songs by integrating music into CBS television series and getting artists into iTunes.

CBS Records plans to build a roster of artists from the ranks of independent musicians who write and perform their own songs, with an initial focus on digital distribution of their content. In addition to the iTunes Store, the music will be offered through www.cbsrecords.com, as well as through agreements with other online and wireless providers. CBS Records will also offer physical distribution through partnerships with outside companies.

“CBS is one of the most powerful entertainment brands in the world, and music represents a natural and complementary extension of our content assets,” said CEO Les Moonves. “With more consumers choosing the online download model as the preferred way to purchase their favorite songs, we have an opportunity to use our unique and broad collection of media platforms to create a new music label paradigm for a small price of admission.”

The Suffolk County (NY) Psychological Association has introduced a new podcast, Psyched Up, to help educate the public about the field of mental health.

“People are becoming more aware of the important roles that behavior, attitudes and emotions play in not only overcoming illness and solving problems, but also in maintaining a healthy lifestyle,” said Dr. Peter S. Kanaris the Coordinator of Public Education for the Association. “When it comes to your well being, the mind really matters.”

The first podcast, How to handle the holiday season (MP3), looks at the many psychological and emotional issues associated with the holidays.

Forrester’s recent analyst report that suggested that Apple’s iTunes sales had flatlined has generated a great deal of skepticism and controversy. Forrester reported that iTunes sales had dropped 65% between January 2006 and June 2006.

Others have a much more positive outlook on Apple’s digital music store. Apple flatly denies Forrester’s claims, while other analysts are bullish on Apple’s iTunes Store prospects.

“As Mark Twain might have said, the rumors of iTunes’ death have been greatly exaggerated,” said Gian Fulgoni, chairman of comScore Networks.

“In contrast to a recent research report indicating that iTunes sales have declined by 65 percent, comScore data show that iTunes sales actually grew 84 percent during the first three quarters of 2006 versus year ago,” added Fulgoni. “This growth rate aligns closely with Piper Jaffray’s recent estimate of 78 percent growth in the number of iTunes songs downloaded.”

Piper Jaffray analyst Gene Munster wrote in a research report that the number of songs sold per week on iTunes had risen 78 percent in the first nine months of 2006 compared with the same period in 2005.

“Contrary to recent reports suggesting sales on iTunes are declining rapidly, our analysis of Apple company data shows strong growth year over year. With less than 5% of music purchased online, this market will go through massive growth in the next several years,” said Munster.

Here are the details of comScore’s analysis:

Some users had reported trouble recently using our main feed (https://www.podcasting-news.com/feed/) with Google Reader. We contacted Google and got a response that they would look into it.

The issue appears to now be resolved:

Thanks to Mike K. and others for bringing this to our attention.