A new report by the Aberdeen Group and Van Dusseldorp & Partners forecasts that the difference in size between the North American and European Digital Content Distribution (DCD) markets is set to narrow in the next five years. A compound annual growth rate of 40% is predicted to increase the value of the European market to $1.86 billion by 2005.
Factors hindering the growth of the market in recent years include the strong influence of public European public television broadcasters over content creation and distribution and the dominance of incumbent telecoms carriers. However, Michael Hoch, senior analyst at the Aberdeen Group claims that new innovators “will arise to address the technical and service requirements that are unique to specific nations or regions. Europe, in particular, faces significant challenges in terms of privacy, content localisation, and content ownership within the content distribution framework.”
DCD Distribution Market Values
2000 | 2005 | |
European Market | $351m | $1.86b |
North American Market | $1.01b | $3.43b |
Global Market | $1.63b | $7.31b |
Source: Aberdeen Group/Van Dusseldorp & Partners