Global spending on online content will more than double in the next four years, according to a new report from analysts at IDC.
The analysts predict that over $50 billion will be spent worldwide accessing online content this year and this is expected to rise to $108 billion in 2006. The Online Publishers Association (OPA) has already estimated that internet content revenues in the US totalled $300 million in the first quarter of 2002 (see
Online Content Becoming Viable Revenue Source, Says Report).
“The market for online content is being driven by businesses and consumers that are increasingly willing to pay for reliable sources of timely, accurate and complete information,” said Sue Feldman, IDC’s research vice president for content management and retrieval technologies.
“As the market matures, buying patterns, purchasing behaviour and the means of delivery will continue to evolve. The result will be a market that looks significantly different than it did just a few years ago.”
The report warns that content service providers (CSPs) face the dual challenge of expanding their subscriber base while satisfying existing subscribers. They are also becoming increasingly reliant on IT to maintain their collections and ensure that queries can be run quickly and accurately.
“In many respects, CSPs and content-related technologies have a symbiotic relationship,” added Feldman. “Content drives sales of technology and technology helps drive sales of content.”
The IDC yesterday announced the launch of a new Continuous Intelligence Service (CIS) – Online Content Market: Technologies and Strategies. This will monitor the online content sector offering guidance to buyers and providers in this rapidly expanding market.
