Jupiter Media Metrix report presents bleak picture for paid online content revenues

US based Jupiter Media Metrix (JMM) has predicted that revenues from paid online content will grow to only $5.8 billion by 2006, up from $1.4 billion in 2002.

JMM that claims to be the global leader in Internet and new technology analysis unveiled the report at the ninth annual Jupiter Media Forum last week. Revenues for general content will reach $2.3 billion in 2006 up from $700 million in 2001, while revenues from online games and digital music will be $1.8 billion and $1.7 billion by 2006, respectively, the report says. Last year, the figures stood at $260 million and $30 million, respectively.

Although Jupiter forecasts that general content revenues will hit $2.3 billion by 2006, the market will stay relatively fragmented. Within the general content category, the highest revenue generating genres in 2006 will be audio/video entertainment ($600 million), adult entertainment ($400 million) and financial and business news content ($350 million).

Genres expected to generate the least revenue in 2006 include: consumer/shopping aids ($85 million), content for children ($95 million) and sports content ($95 million). In addition, Jupiter revealed the findings of a March 2002 Consumer Survey, which had 70 per cent of the respondents saying that they would not pay for content online.

The figures indicate that the mass market still largely shuns anything resembling a subscription online. However, in the near term, media companies will create subscription services through packaging, exclusivity and added interactive features, the study notes. Over time, the companies must use the gradual US broadband transition to reset industry ground rules and recondition consumers' expectations.

42 per cent of online adults expect over time that people will have to pay for content on the Internet. Consumers' attitudes toward paying for content have, if anything, worsened since August 2000, when 45 per cent of respondents answered the question in the same way, the study says.

The silver lining is that Jupiter analysts believe that major media properties are in a better position than they were four or five years ago, as they no longer face well-financed start-ups giving away quality programming in an effort to lure new users.

Latest Reads
Lotus Make-up brings out women's inner shine

Lotus Make-up has created a new campaign with digital and social media agency WATConsult called #SparkleEveryday.

MAM Marketing MAM
Radio City makes us experience Mumbai

Radio City has created a campaign that makes us experience a city even with eyes shut. The film Taxi Driver, is based on this emotion. To make this idea more experiential, the thought will be adapted in print, on-air, digital and on-ground.

MAM Marketing MAM
MP Birla Chetak Cement's new TVC is truly Rajasthani

MP Birla Chetak Cement has rolled out a new TVC conceptualised by Ogilvy Kolkata and produced by Conversation Films.

MAM Marketing MAM
Hitachi's new automated service platform

Hitachi Systems Micro Clinic, system integrator and a specialist in managing end-to-end IT infrastructure solutions and services, has announced the launch of an automated service delivery platform Hawkeye 3.0, which aims at enabling organisations to increase productivity and efficiency. The...

MAM Marketing Brands
The ins and outs of femvertising

MUMBAI: How many times have you come across ads that seek to empower women and ask them to take on the world (at times by using their product)? The general tendency of advertising in the seventies and the eighties was to objectify women in order to fascinate the ‘male audience’ to buy their...

MAM Marketing MAM
Fogg maker takes on fairness creams with Pretty24

Taking a stab at fairness creams’ perennial message of fair skin being the benchmark beauty and success, Fogg deodorant maker Vini Cosmetics (Vini) is touting the idea that every shade of skin is equally beautiful. The company has been plugging the primetime of mainline television channels for the...

MAM Marketing MAM
55% marketers make better decisions with machine learning: iProspect report

MUMBAI: Digital agency iProspect has released its third annual Future Focus whitepaper geared to examine how machines and technology are impacting marketing and advertising in the year ahead. The paper takes a look at how brands can make the most of machines in 2018, from facilitating seamless...

MAM Marketing MAM
Paisabazaar aims Rs 1500 cr mutual fund AUM by 2018

MUMBAI: Paisabazaar has announced that assets under management (AUMs) garnered through its mutual funds products crossed Rs 1000 crore mark last month. The organisation says it is confident of reaching Rs 1500 crore of AUM by March 2018. The fin-tech company launched mutual funds on its platform...

MAM Marketing Brands
Blackberrys gives digital mandate to FoxyMoron

MUMBAI: Menswear fashion brand Blackberrys has assigned its digital mandate to FoxyMoron after a multi-agency pitch. The account will be managed from the agency's north office. As per the mandate, FoxyMoron will be managing the digital creative, media, search engine optimisation as well as website...

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories