A recent report from Juniper Research has found that the value of the global digital content market will reach $154 billion annually by 2019, an increase of nearly 60% compared to last year.
According to Juniper Research's report, mobile and online games would account for the largest share of content sales (38% of cumulative revenues). It cited the success of platforms such as Valve’s Steam (which now has over 125 million active accounts worldwide) as key drivers in this evolution, while revenues from consoles/handhelds were diminishing as players migrate their gameplay to tablets and higher-end smartphones. Juniper Research also highlighted how content ownership is giving way to content access as the another important push factor in the take up of digital content, with a rise in the need for the same content to be available across multiple devices.
The research also highlighted a dual paradigm shift in content monetization models. In the first instance, pay per download now accounts for around 10% of mobile content revenues, with the bulk of revenue achieved post download.
The research noted that leading OTT (Over The Top) players such as Apple, Google and Amazon were in pole position to capitalize on this transition, with each now offering cloud-based solutions both for personal storage and premium content access. It argued that if consumers are tied into multiple products from an OTT, those consumers becomes increasingly reluctant to churn away from one element of the brand, as he/she loses access to content across their devices.
Research author Dr Windsor Holden
The increased consumer desire for 24/7 access on any device leads to greater opportunities for players that can offer subscription-based, unlimited content streaming.
