The research firm expects an increase in the household penetration of next generation Internet-connected devices and forecasts increased adoption of online content for video consumption.

However, new business models and innovative content is required to benefit from the forecasted consumer spending.

Based on a survey of 3,000 consumers in Europe, the United States and Asia, Bain & Company has predicted Internet television to be in 60 percent of households by 2014.

"The permanent media revolution continues," said Patrick Behar, head of Bain's Media & Entertainment practice in Europe and lead author of the study. "Significant change lies ahead for the media and entertainment industry as content platforms, new entrants and incumbents battle for profits and market share."