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Digital content market to reach $154bn by 2019

Juniper Research report says gaming to drive 60% growth in content market

Digital content market to reach $154bn by 2019
Mobile and online gaming will drive the digital content market, according to Juniper Research.

The global digital content market will be worth $154 billion annually by 2019, an increase of nearly 60% on 2014, according to a new report from Juniper Research.

The analyst company predicts that mobile and online games would account for the largest share of content sales (38% of cumulative revenues), with game formats continuing to transition from physical to digital.

The new research, Digital Content Business Models: OTT & Operator Strategies 2015-2019, cited the success of platforms such as Valve's Steam (which now has over 125 million active accounts worldwide) as key drivers in this evolution, while revenues from consoles/handhelds were diminishing as players migrated their gameplay to tablets and higher-end smartphones.

Strong growth is also expected to come in the Lifestyle segment, where dating services such as Match.com, eHarmony and Zoosk are seeing marked uplifts in revenues from their mobile channels.

The research also highlighted a dual paradigm shift in content monetisation models. In the first instance, pay per download now accounts for around 10% of mobile content revenues, with the bulk of revenue achieved post download. Secondly, it highlighted the transition from content ownership to content access, with consumers needing to engage with the same content across multiple devices.

Research author Dr Windsor Holden commented: "The increased consumer desire for 24/7 access on any device leads to greater opportunities for players that can offer subscription-based, unlimited content streaming."

The research noted that leading OTT (Over The Top) players such as Apple, Google and Amazon were in pole position to capitalise on this transition, with each now offering cloud-based solutions both for personal storage and premium content access. It argued that if consumers are tied into multiple products from an OTT, those consumers becomes increasingly reluctant to churn away from one element of the brand, as he/she loses access to content across their devices.

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