Tuesday, March 14, 2006

Public Content to Pay Publishers for Content

Consumers purchased $2 billion of content in 2005, up 15 % over the prior year, according to the Online Publishers Association.

Entertainment was the big winner, growing by 38%, in part thanks to iTunes. Consumers also laid out more cash for Games (up 22%), but general news (down 10.4%) and sports (negative 2%) took it on the chin. I think the music bubble is about to burst and see flat growth soon, but games are just scratching the surface, so 30 percent growth wouldn't be a surprise.

Advertising continues to dominate pay for content, but models with profitably coexist. By comparison, advertising on newspaper websitesalone was $2 billion last year, an increase of 31.5 %.

Posted By Jason Dowdell at 08:43 PM
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