U.S. On-demand Internet Content Revenues to Approach $9 Billion by 2010

31 01 2006

U.S. consumer spending for online entertainment, including on-demand gaming, music, and video services, will grow by 260% in the next five years, according to Digital Lifestyles: 2006 Outlook, a new study from Parks Associates. Driven by broadband usage and innovations in digital entertainment platforms and content services, revenues will grow from $2.4 billion in 2006 to nearly $9 billion in 2010.

* The number of worldwide consumer broadband subscribers will grow from 184 million in 2005 to more than 360 million in 2010;
* The number of households worldwide using data networking equipment will grow from approximately 82 million in 2005 to more than 135 million in 2010; and
* Worldwide subscribers to IP multichannel video services (IPTV) will grow from approximately five million in 2005 to nearly 70 million in 2010.

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Teen Content Creators & Consumers

22 12 2005

About 21 million, or 87% of kids ages 12-17, use the Internet. According to a survey by the Pew Internet & American Life Project, half of all teens and 57% of teens who use the Internet have created a blog or webpage, posted original artwork, photography, stories or videos online or remixed online content into their own new creations. The study considers them "Content Creators."

The results highlight that this is a generation of teens eager to share their thoughts, experiences, and creations with the wider Internet population.

Some key findings of the study include:

* 33% of online teens share their own creative content online, such as artwork, photos, stories or videos
* 32% say that they have created or worked on web pages or blogs for others, including friends or school assignments
* 22% report keeping their own personal webpage
* 19% of online teens keep a blog, and 38% of online teens read blogs
* 19% of internet-using teens say they remix content they find online into their own artistic creations.

Teens are often much more enthusiastic authors and readers of blogs than their adult counterparts. Teen bloggers, led by older girls, are a major part of this tech-savvy cohort. "For American teens, blogs are about self-expression, building relationships, and carving out a presence online," said Amanda Lenhart, co-author of the report entitled, "Teen Content Creators and Consumers."

51% of online teens report downloading music, compared to just 18% of adults who report similar behavior. Mary Madden, a Research Specialist at the Project and co-author of the report, said "At a time when social norms around digital content don’t always appear to conform with the letter of the law, many teens are aware of the restrictions on copyrighted material, but believe it’s still permissible to share some content for free." 75% agree with the statement that, "Music downloading and file-sharing is so easy to do, it’s unrealistic to expect people not to do it."

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The UK is the Music Download Capital of Europe

15 12 2005

…People in the UK said they spent 75 pence per month on downloads, this is three times more than the figure in France, Germany, or Italy. According to the British Phonographic Institute, the market in the UK in the first half of 2005 topped 10 million downloads….

It’s not just the kids who care about their mobile music. The UK has the highest number of "silver rockers" in Europe with 21% of the over 50’s using a digital music player.

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European Music Industry Faces a Demographic Time Bomb Warns JupiterResearch

30 11 2005

Another good little blip on free music file sharing vs. paid in Europe. The most important part of the article - “Among the 46% of European online 15-24 year olds who use the Internet to consume music….40% do not consider the CD to be a good value for money…”

The RIAA and IFPI can and will*1* continue their campaigns against their members’ most involved consumers, but so long as this situation remains, where consumers feel like they are receiving less value than they are giving up when consuming music, there will continue to be a strong, and well-motivated free file-sharing community.

As someone who’s had to work free-to-consumer business models for years now, there is _absolutely_ no question in my mind, there _is_ some level >0 where the majority of these folks would feel like they were receiving an even exchange for their money, and would indeed pay for it.

Now, I know full well there’s not a chance in hell that the established music industry will engage in the real hard work of trying to figure out how to make this thing work until someone else, (Apple, others) forces them down a path, so, suppose will have to look to keep helping be that force! :) *2*

More here
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*1* Since that’s effectively their sole purpose in being, and they’re now smelling blood with the horrible recent US Supreme Court Grokster decision

*2* And I know the companies that support the RIAA and IFPI would never in a million years consider this, but it definitely keeps occuring to me - maybe, as multimedia continues to become more and more prominent, music as a fully-independent media vehicle has largely had its run, and it’s time to do something different. I can’t even begin to tell you how many times I’ve thought to myself that when I buy a SharkTales or Robots DVD, I think I should be able to bring it with me in the car, load it into my CD player, and get the soundtrack as part of the package. If you want to goose the price of DVD up by, say, $1-2 / unit to pay for that, yeah, I’d go for that, and then you, Music Companies, would get, let’s say, $24 / yr, (presuming one kids’ DVD / mth @ $2 royalty) for someone that otherwise might spend $18, (presuming 2 soundtrack purchases / yr) or a net increase of 33% on Gross Rev, not including the fact that if my kids’ DVD included such soundtrack for that $2, I’d definitely be tempted to buy more of them, (gated, of course, by the quality of the content that the movie industry can come up with, but hey, wouldn’t that be something - two different media divisions of many of the same companies pooling time, effort and resources to actually help develop better content - I know, I know, whoa Boy, what are you thinking? ;) ).

Silent media - long dead.

Black and White media - largely had its run.

Non-HD video media and Non-Interactive media - both have maybe another 10 yrs of life.

It’s time to start not just thinking about, but actually working toward, the kind of much better marriage of value generated vs. cost required that can do away with the horribly conflicted relationship between music companies and their most voracious consumers that exists now, (and then we can all stop wasting our money on the RIAA & IFPI, since it’s _our_ funds that are being used against us).