New research by Jupiter MMXI today reveals that by 2006 European users will be spending E3.3 billion for content on their mobile phones compared to E1.7 billion spent by PC users. Currently it is only adult sites that have managed to generate income from paid content but Jupiter believes this is set to change as more companies launch paid content services.
European Internet Users Who Would Pay For Content | |
Music | 16% |
Live Music | 5% |
Sports | 5% |
Finance | 5% |
Health | 4% |
Kids & Teens | 3% |
Online Video | 3% |
Games | 3% |
Would Not Pay For Content | 47% |
Source: Jupiter MMXI, 17.01.02 |
The report forecasts that mobile internet users will be more willing to pay for content than those accessing the internet via a PC. In 2001 European mobile users spent E590 million on content, almost twice as much as the E252 million spent by PC users.
The most popular paid-for content amongst mobile users in 2001 was ring tones, logos and news and finance alerts delivered via SMS. In order to generate E3.3 billion by 2006, Jupiter predicts that popular mobile content will include enhanced ring tones and logos and multimedia alerts, incorporating audio and images. Other services which are primarily free online via a PC, such as electronic greetings cards, will increase in popularity, says Jupiter.
Consumer Spending On Content, 2001-2006 (Em) | ||
PC Internet | Mobile Internet | |
2001 | 252 | 590 |
2002 | 337 | 860 |
2003 | 490 | 1407 |
2004 | 737 | 2,233 |
2005 | 1,101 | 2,915 |
2006 | 1,686 | 3,280 |
Source: Jupiter MMXI, 17.01.02 |
“Increasing usage of Short Messaging Service on mobile phones is good news for the media industry. Newspapers and magazines struggling to generate direct consumer revenues from their Web sites have more opportunity to charge for content on mobile phones. They should use their Web presence as a way to promote mobile content with which they will be able to generate more revenues”, stated Olivier Beauvillain of Jupiter MMXI.
Despite the dominance of the mobile content market, paid-for PC content will also enjoy growth stimulated by the increased take up of broadband access although Jupiter predicts that there will be no “dramatic shift” from a free to a paid-for internet. Entertainment is thought to be the driver for paid-for PC content.