Online Line Content in Europe Jumps 400% to $10.7 billion by 2010: Study

Digital online content revenues in Europe are set to jump 400% in five years to reach €8.3 billion (or $10.7 billion) by 2010, according to a new report by the European Commission’s Directorate General Information Society. The study also  identified 36 key roadblocks to developing online content. 

For the most advanced sectors, online content will represent a significant share of total revenue: about 20% for music and 33% for video games. 

Thanks to the spread of broadband, the roll-out of advanced mobile networks, and the massive adoption of digital devices, the study shows that mass market online content distribution is becoming a reality, creating unique opportunities for Europe.

The study identified 36 roadblocks to developing online content and assesses their market impact up to 2010, including broadband connectivity, slow uptake of 3G in Europe, piracy, consumer acceptance of new content services, a lack of specialised skills in media companies, and the cost of digitization of content.

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.

The study, prepared by the EU commission with a consortium made of three consultancies specialized in media  (Screen Digest, Goldmedia and Rightscom) will be an important input for the Commission's proposals on 'Content Online in Europe's Single Market' that may be presented in the second half of 2007. 

The full 308 page study is available in here in pdf. 

Related: Online Content Revenue In Europe To Rise 400 Percent By 2010 - paidContent.org

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