NEWS-BITE | Media | Online Content: Good news for newspaper and magazine publishers, which doesn’t come along much these days. Forrester Research reckons that the rise of smartphone and tablet usage will lead to growth in the paid-content market online, meaning more consumers will be willing to pay to access digital content, including music, games, film, TV and news.
Entertainment and media companies have struggled to persuade consumers to pay to access content available on websites, but there seems to be more willingness to pay for content when it is provided via smartphone or tablet apps. So much so, Forrester reckons consumer spending on online content in Western Europe will surge 65% in the next five years to 10.2 billion euros, with a 77% increase in spending on news.
Forrester analyst Darika Ahrens told reporters: “While consumer research for years reported that consumers claimed they wouldn’t pay for content, the forecast revenues indicate otherwise”.
These stats will provide some much needed hope for the owners of content companies, especially newspaper and magazine publishers, who have struggled to make ad-funded websites pay, while watching circulations and ad revenues slide in the print domain.