Smartphones and tablets drive digital content revenue

by Sarah Griffiths on 7 December 2010, 10:20

Tags: General Business

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Digital content-ment?

Smartphones and tablets are ‘the driving forces towards monetisation of the digital era' with 18 to 34 year olds in particular snapping up mobile content, according to a new report.

More than a quarter of Brits own a smartphone, rising to 44 percent of the 18-34 age group, found KPMG's Media and Entertainment Barometer which was carried out by YouGov and surveyed around 4,300 people.

A total of 80 percent of consumers have used their smartphone for surfing the net, while 1 in 10 have used an e-reader on their mobile. Three quarters of Brits have downloaded apps in the last 12 months, with a third paying for them and 1 in 10 people forking out over £10 for the mobile content.

However, most consumers are reluctant to pay for content on their desktops, according to the survey. It found just 13 percent of consumers have paid for online content, while 9 percent said they might consider doing it in future- statistics that might make grim reading for online publications charging for content.

According to the report making money from paywalls will not be simple as a measly 2 percent of consumers said they would be prepared to pay for unrestricted access to a website they currently use on a regular basis if a paywall was introduced, with 80 percent vowing to look elsewhere for similar free content.

David Elms, head of media sector for KPMG, said: "Whilst the appetite to pay for web content is moving slowly, the pace of spending money to download content on mobile devices is moving much more quickly, particularly in the crucial 18-34 demographic. A key question is whether consumers, increasingly used to paying for premium content on their mobiles and tablets, will become more willing to pay for online content to their desktop - but, at the moment, it is too early to identify any discernible trends.  

"The rise of the smartphone and tablet, particularly among the key 18-34 demographic, highlights the potential for mobile advertising to this elusive audience. The potential for mobile advertising has been recognised for some time and that potential may now be on the cusp of being realised," he added. 

Music subscriptions were the most common in the past 12 months, followed by online gaming, business news services the online newspapers or magazines. Consumers who did not currently pay for online content were asked whether they thought they would become a paid subscriber over the coming 12 months. In total, nine per cent indicated they would possibly become a paid subscriber.