A survey conducted by the Pew Internet & American Life Project reports that daily traffic to video sharing sites like YouTube has doubled in the past year.  15% of respondents to the survey said they had used a video-sharing site “yesterday.”  Last year that number was 8%.

It’s fun as an internet content creator to be living in times when we can actually say ‘oh yeah, last year our potential audience doubled.’  And moreover, I honestly don’t think anyone would be surprised if that audience doubled again the following year.  It’s clear that online video, while still in its infancy, is not just any ordinary toddler.  It’s more like that kid you might have heard of who just a few months out of the womb was doing Olympic-style iron crosses and sporting ripped abs.

This is obviously not to say that online video traffic growth is limitless.  But the wave is building right now.  Good news for surfers.

So what does this imply for internet content producers?  Not only is the number of eyeballs growing exponentially, but the amount of sheer stuff being uploaded on a daily basis is skyrocketing as well.  How will producers get their content noticed in the vast ocean of internet noise?  As both bandwith and audiences increase, will advertising dollars increase enough to support higher quality and longer length programming like we currently see on television?

It will be interesting to watch and see whether there’s enough money to go around and where it ends up.  Steve Rubel wrote a call to action for online advertisers last October which is still relevant.   In his article he cautions that “the harsh reality is that there will not be enough ad dollars to go around for everyone.”

Who will be the winners and who will be the losers?  And will we all lose out if the internet marketplace can’t support the Hollywood budgets we’ve grown accustomed to consuming through old world media?

So here’s my fanciful prediction for the future of entertainment:

As media moves online, old world Hollywood goes the way of the airline industry.  A glut of consumers and producers drives prices for content through the floor.  No more flight attendants with white gloves.  In the future you’ll have to bring a bag lunch to the movies.

For more on Pew Internet’s report, see paidcontent.org.