Wednesday, March 16, 2005
US Paid Online Content Market Hits $1.8 Billion
U.S. consumer spending on online content reached US$1.8 billion in 2004, up 14 percent from 2003, according to a study released today by the Online Publishers Association.
The trade group said the increase was largely driven by growth in the entertainment and lifestyles category as the Web evolves into an entertainment medium.
U.S. consumer spending on entertainment and lifestyles content grew a remarkable 90 percent, from $217.6 million in 2003 to $413.5 million in 2004. Online Personals Lead: Online personals and dating remained the leading paid content category in 2004, with spending at an all-time high of $469.5 million for the year, up 4 percent over 2003, according to the study.
The study found that spending on business and investment content declined 6 percent over that same time period. As a result, entertainment and lifestyles overtook business and investment content as the No. 2 paid content category and is on track to assume the top position should its current rate of growth continue.
In addition to entertainment and lifestyles, OPA found that the sports and games categories also showed strong annual growth of 38 percent and 22 percent, respectively.
"The fact that Entertainment/Lifestyles, Sports and Games were by far the year's fastest growing paid content categories is further evidence that the Web is on its way to becoming a true entertainment medium for U.S. consumers," said Michael Zimbalist, president of the Online Publishers Association.
Strong Market: According to the study, 19 million U.S. consumers paid for online content in the fourth quarter of 2004, up 2.6 million over the same period in 2003. "The market for paid online content remains strong," said Zimbalist, "and with less than 12 percent of the total US Internet population purchasing content online in the fourth quarter, there is still significant room for growth."
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The trade group said the increase was largely driven by growth in the entertainment and lifestyles category as the Web evolves into an entertainment medium.
U.S. consumer spending on entertainment and lifestyles content grew a remarkable 90 percent, from $217.6 million in 2003 to $413.5 million in 2004. Online Personals Lead: Online personals and dating remained the leading paid content category in 2004, with spending at an all-time high of $469.5 million for the year, up 4 percent over 2003, according to the study.
The study found that spending on business and investment content declined 6 percent over that same time period. As a result, entertainment and lifestyles overtook business and investment content as the No. 2 paid content category and is on track to assume the top position should its current rate of growth continue.
In addition to entertainment and lifestyles, OPA found that the sports and games categories also showed strong annual growth of 38 percent and 22 percent, respectively.
"The fact that Entertainment/Lifestyles, Sports and Games were by far the year's fastest growing paid content categories is further evidence that the Web is on its way to becoming a true entertainment medium for U.S. consumers," said Michael Zimbalist, president of the Online Publishers Association.
Strong Market: According to the study, 19 million U.S. consumers paid for online content in the fourth quarter of 2004, up 2.6 million over the same period in 2003. "The market for paid online content remains strong," said Zimbalist, "and with less than 12 percent of the total US Internet population purchasing content online in the fourth quarter, there is still significant room for growth."
More information at Guardian eCommerce.
Brought to you by the Guardian eCommerce Safe Site Privacy Seal Program.
