Online content to generate 8.3 bln in revenue by 2010 - study

January 25, 2007

Revenue from online content will reach 8.3 bln by 2010 in Europe, a growth of over 400 per cent in five years, says a new study for the European Commission.

The Commission says that, for the music and video game industries, online content will represent a significant share of total revenue 20 and 33 per cent, respectively.

The Commission's study, called 'Interactive Content and Convergence: Implications for the Information Society,' aims to assess the potential of the emerging market for creative content online content. The study found that there were a number of roadblocks to developing online content the biggest roadblock being the lack of widespread broadband access in some EU Member States. The study also reported that the uptake of 3G mobile services was also slow.

Piracy is another roadblock identified in the study. The Commission says that piracy siphons off potential revenue and deters media companies from putting content online. The Commission says that digital rights management (DRM) systems are needed to manage and protect digital content, although they must be standardised or interoperable in order for them to work in the long run.