Revenues from online creative content across Europe will reach €8.3 billion (£5.5 billion) by 2010, according to an EU study. The spread of broadband, mobile and the adoption of digital gadgets will drive the growth.
The research, titled ‘Interactive Content and Convergence: Implications for the information Society’ assessed the outlook for the online content market, identifying growth areas and potential ‘roadblocks’ for the market.
The report predicts that broadband penetration across Europe will double to 25.2% of EU citizens, and will catch up to the US in this area. At the beginning of 2006, around 60% of EU households had a PC, and 46.2% had internet access.
This increased broadband penetration, in addition to the growth of 3G mobile use (currently 12% of EU citizens have 3G) and the increasing use of digital music players, is predicted to drive growth in online content distribution.
The report predicts that:
- The online music download market will grow from £79 million in 2005 to £725 million by 2010.
- Mobile and online music distribution is expected to account for 20% of total European music revenues by 2010.
- European digital VOD distribution will rise from £20 million in 2005 to £800 million, £659 million of which is expected to be from online VOD.
- The games download market will grow to £1.5 billion (33% of the total games market), from £460 million in 2005.
The ‘roadblocks’ to market growth highlighted by the study were the varying levels of connectivity across Europe and the threat posed by piracy, as well as copyright and legal issues.
Internet Statistics Compendium – January 2007