JUPITER RESEARCH ANNOUNCES PAID ONLINE CONTENT AND SERVICES IN EUROPE WILL BE WORTH €3.2 BILLION BY 2007(New York, NY - April 23, 2003) - The latest findings from Jupiter Research, a division of Jupitermedia Corporation (Nasdaq: JUPM), reveal that paid online content is still a nascent industry in Europe but is forecast to grow rapidly over the next four years.
For 2003, only 9% of Europeans will purchase online content and services, resulting in revenues of €693 million, but this figure is projected to grow to 23% in 2007, resulting in revenues of around €3.2 billion. This equates to an average yearly spending of €70 per buyer in 2007.
The breakdown of consumer spending on paid online content and services remains diverse. In 2003, 21% of consumer spending will be for services such as premium e-mail, e-cards, SMS composer, Web hosting and anti-virus software, with a further 13% spent on text and picture-based forms of content such as financial and business news, news archives and sporting information. The largest category of paid online content and services in 2003 will remain adult-related content, which is responsible for 43% of all consumer spending, although multi-media content (music, gaming, video and audio) is finally sparking consumer interest, resulting in 23% of consumer spending.
According to Jupiter Research, by 2007 this pattern is set to change, with multi-media related content - driven by high broadband usage - taking the lead. Jupiter Research forecasts that multi-media content will represent 50% of total paid online content and services spending, ahead of paid text and picture-based services, which will count for just 25% of consumer spending. For the first time, adult content will not be the primary generator of revenues accounting for just 25% of consumer spending.
According to Olivier Beauvillain, Analyst at Jupiter Research, "In the next two years, the paid online content and services market will be characterized by a large variety of categories where consumers will pay only limited amounts. To take advantage of this - while waiting for the rise of multi-media paid content - portals, ISPs and media companies must build flexible payment systems that favor 'a-la-carte' consumer purchasing habits in addition to subscription models. This will enable them to gradually add new paid categories to their user base and ultimately increase paid online content and services revenues".
The complete findings of this report are immediately available to Jupiter Research clients online. The complete findings of this report are immediately available to Jupiter Research clients online. For more information please contact Olivier Beauvillain at +126.96.36.199.00.32 or [email protected].
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