We just announced today the results of a ground breaking Jupiter report and forecast model: European Content, Services, and Activity Forecast 2006 to 2011: Understanding the Impact of Free
For the first time Jupiter has forecasted the European online audience by type of activity and has quantified the share that will pay versus those that won’t. The key finding is that non-paying content and services audiences will dwarf paying audiences by 2011, with just 14 percent of the cumulative total paying.
Despite significant improvements in the availability and quality of content and services, success stories are relatively thin on the ground and European consumer demand is actually declining. Key to this trend is greater consumer awareness of the realities and limitations of digital paid content offerings, such limited catalogue, file quality and DRM interoperability issues. Adoption by relatively small of enthusiasts rather than broader, mainstream audiences will be key to future revenue growth.
With a few notable exceptions such as music, the European online Paid Content and Services market has failed to make significant headway. The Internet remains a predominately free, advertising supported medium. Though premium revenues will reach €6.8 billion in 2011 the vast majority of online content and services will not pay. There is a clear need for content owners to explore ways in which they can explicitly share in advertising revenues to offset modest direct revenues online and to reach elusive, typically young, non-paying online audiences.
If you are press and want to write about the report and get analyst comment then email
PressEurope AT jupiterresearch DOT com