European Online Content Revenues To Reach €13 Billion
Revenues from online content will reach €8.3 billion by 2010 in Europe, a growth of over 400% in five years, according to a new study by Screen Digest for the European Commission’s Directorate General Information Society and Media.
Firstly, to assess the potential growth of digital content including TV, movies, games, radio, music and publishing content across new distribution platforms and technologies, such as interactive TV, broadband and mobile.
Secondly, to identify the current and potential economic, technical and legal obstacles that might hinder the exploitation of digital content in Europe.
The research found that the spread of broadband, the roll-out of advanced mobile networks, and the massive adoption of digital devices mean that online content is on the verge of becoming mass market, especially in the sector of music and games, where the proportion of revenues made online already represent a significant percentage of overall income.
The research will be a contribution to the communication on Content Online in Europe’s Single Market which should be presented later this year by Viviane Reding, European Commissioner for Information Society and Media.
The report highlights some of the key obstacles to developing online content and assesses their market impact up to 2010.
The difference in broadband adoption between European countries is one area covered by the report. It shows that the average broadband penetration per capita was 17% at the end of 2006, with 30% in Denmark, 21% in the UK and only 2.5% in Greece.
For mobile services, the relatively slow uptake of 3G in Europe (11% at end-2005), and the sometimes confusing pricing and structure of data tariffs are obstacles still to be overcome, says Screen Digest.
Copyright issues including difficulties in accessing content due to the definitions of new media, exploitation rights, terms of trade and collective management of rights at international level all have the capacity to negatively impact access to content.
However Screen Digest’s view is that many of the difficulties could be solved through business and legal practice in the medium to long term.
Vincent Letang, senior analyst at Screen Digest, said: “This was a fascinating consultancy brief for Screen Digest to be part of. The scope of the project was huge: over the nine months we interviewed 180 entities in Europe, including content and technology providers, network operators and regulators.
“In addition we carried out significant research and analysis across 25 European countries and many media sectors. We are very proud that the research we have done will contribute to the European Commission’s policy on digital content and help companies in the EU understanding the potential for revenue and jobs creation in the region.”
A recent report from Informa Telecoms & Media forecast that legitimate online TV and video services will generate revenues of US$6.3 billion in 2012 (see Online TV Revenues To Grow Massively).
Meanwhile, Nielsen//NetRatings revealed that active home internet usage experienced its largest growth in Spain as the year ended (see Home Internet Usage Increases).