Pay-For Content Set To Grow Faster Than Free, With Music Leading The Way, Forecast Says
Maybe there are legs after all to that hypothesis on the return of pay-for content - the one Economist publisher Paul Rossi suggested at our Future Of Business Media conference last month. Just 12 percent of European web users paid for online content last year, but that’s due to rise to 19 percent by 2013, a new Jupiterresearch report says: “While free content will continue to dominate, as overall online audiences for all content categories continue to grow, so the number of European users willing to pay for content online will grow at an even greater rate.”
That sounds like salvation for formerly premium publishers who had come out from behind their pay walls just in time for an advertising recession. But what’s driving it? A seismic shift in the number of people who will begin paying for music, Jupiter says. Though freeloaders outnumbered paying listeners by 53 million to 6.9 million last year, by 2013, it’s reckoned European efforts to drive consumers to legal downloads will see payers become the majority - 63.7 million against just 55 million. That’s one factor will drive paid content income to €5 billion in 2013, from €1.4 billion last year. More at paidContent:UK...
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Comments (1)
Nov 12, 2008 10:38 AM
Kudos for Rossi, but frankly there are many people and, more importantly, some new companies that have given the old pay-as-you-go model a new life. Znak Inc. for example presented its premium content monetization solution, named Znak it!, already at the Web 2.0 Expo in SF back in April 2008.(http://www.znak-it.com) As Steve Ballmer recently said, “the ad model works well for a lot fewer companies than one would think.” But even the large ones such as YouTube, MySpace or Facebook have yet to come up with a working business model; advertising cannot generate the billions their investors hoped for. Micro or small payments for premium content seem to be inevitable. Products like Znak it! make the payments fair, very easy to process, and safe. More importantly, Znak it! users can surf the net and pay for premium content without any additional registration or long-in, anonymously, which in the time of omnipresent cookies, spyware and user profiling is a value in itself. Needless to add, that Znak-paid content can help us clean the Internet – or, as some call it, “the cesspool of false information and plagiarism”—form the (“free”) stuff that pollutes it.
Nov 12, 2008 11:01 AM
Greg - is there more information about Znak? I went to their website and it only says that they are in private beta.
Nov 12, 2008 6:16 PM
Hurray, I for one look forward to this. As a music publisher and owner of a software application that stops piracy it’s going to be those across the water who finally understand the problem and try to solve it. Greed is the basis for all things in the US and the mindset of the Bush administration. Using Tech companies to build expensive toys on the backs of the Chinese (to sell oil to) to play music they stoled and never created . ” Clean up the cesspool” should be the new slogan.
Nov 12, 2008 6:36 PM
“Hurray” is right and I agree in whole. American i am and retarded, criminally irresponsible the Bush admininistration has been to let the music market be canibalized by online thievery. Its that simple, P2P is stealing, no different than walking out of a Virgin Music store without paying. There are no new worlds of fantastical qualitys, its one stupid computer talking to another on one planet on a path of destruction . Well, its to late for the Bush Admisntration to pull their heads deep out of their arse but mayby Obama will supply some fresh air. Over 2000 Indy reatail stores have gone out of buisness within the USA along with countless Indys
so Steve Jobs and Apple geeks can retire in luxury on their minipods sales along with the rest. Wake up, wheres law enforcement when you need it. Why do ISP’s get to act like “See no Eveil Hear no Evil” or better yet, Toll Booth operators collecting the cash everyday for the use and transport of Stolen property. There is no “long tail” econonmy as the dumbass of Wired magazine gloats about all the time. Its dark days ahead untill they control piracy and copright.
Nov 14, 2008 8:19 AM
@Andrew Price - ““Hurray” is right and I agree in whole. American i am and retarded, criminally irresponsible the Bush admininistration has been to let the music market be canibalized by online thievery. Its that simple, P2P is stealing, no different than walking out of a Virgin Music store without paying. There are no new worlds of fantastical qualitys, its one stupid computer talking to another on one planet on a path of destruction .”
OK. That’s enough for me. You must be a very filthy rich person to talk like that. Are you really speaking seriously? Because if you are, I would very much regret to know that there are still some greedy and egocentrical individuals in this world that can’t differenciate between REAL property (land, cars and food) and intellectual property which is really an oximoron. Do you really want to force college students in the USA to get out of the University in order to pay legal fees to RIAA? Is this what you really want?
I agree that ISPs should implement some kind of a blanket license that should give their clients the opportunity to download all the MP3s - and not WMA DRMed music - that they want - for a year in exchange of a subscription. In that respect, Datz is a great advancement regards to Napster’s and Rhapsody’s model. But that is no excuse to criminalize P2P.
After all, we’re talking about zeros and ones that can be copied and shared and not tangible things that can’t be shared and used simultaneously by several.
http://www.zeropaid.com/news/9843/Students+Dropping+Out+of+School+to+Pay+RIAA+Legal+Fees
http://www.datz.com/musicloungepromo/
Nov 17, 2008 2:21 AM
This is very good news for the music industry and for new music ventures. The way to get people to pay for content or to at least use legal alternatives has always been to offer them the choice of content they get from illegal sources and create an easier, safer and realistic alternative.
Steve Purdham
CEO - We7
http://www.we7.com
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