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The cost of data transfer compared to broadband prices could see online video fail to become a money-making operation, one expert has suggested.

Screen Digest's Head of Broadband Media Arash Amel has highlighted the fact that content providers have failed to convert the large audiences watching online video into profit on the whole.

He related this issue to the 'bandwidth crunch' that many experts have predicted will threaten the growth of bandwidth-consuming services.

Mr Amel said: "The critical question bubbling under the surface is 'who will pay for the bandwidth?'

"With data transfer costs continuing to rise in relation to falling broadband prices, and so much online video in the UK now either not directly monetisable or loss making, the online video value chain - whether for video delivery or service provision - will face critical challenges."

Meanwhile, the BBC has announced plans to promote its iPlayer service on a global scale after a successful launch in the UK.

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