Net users may be willing to pay for content after all

Zardon · Jan 6, 2003, 06:08 PM

LONDON (Reuters) â€” The Internet's reputation as a haven for freeloaders is beginning to lose some meaning as research released on Monday suggested the majority of Western European online users are willing to pay for digital content.

A survey conducted by Jupiter Research said Internet users' reluctance to pay for online content, ranging from music downloads to news articles, dropped from 47% in 2001 to 41% last year, suggesting media companies may finally see their digital subscription ventures begin to pay off.

With online advertising in the doldrums the past two years, media outfits from newspaper publishers to Internet service providers (ISPs) have rolled out a variety of subscription-based offerings aimed at increasing revenues.

Jupiter projects Western Europeans will spend 2.5 billion euros ($2.62 billion) by 2007 on all forms of digital content, up from 337 million euros last year.

Any increase in consumers' willingness to pay is positive news for struggling Internet companies as it suggests consumers are gradually becoming accustomed to the notion that many forms of online content will come with a price tag some day.

"It's very encouraging that more people are willing to pay for content, particularly in the longer term," said Olivier Beauville, a Jupiter analyst.

According to Jupiter, 19% said they would pay for song downloads over the Internet, up from 16% a year ago.

Major recording labels and retailers have had trouble getting consumers to switch from free file-swapping networks such as Kazaa or LimeWire to their own digital subscription services.

Another area of growing consumer demand was video downloads. Thirteen percent of consumers said they were willing to pay for such material compared to three percent a year ago.

Beauville cited online gaming as a promising growth area too, forecasting that many avid gamers would spend on average 100 euros to 150 euros annually to download games or pay for the ability to play other gamers head-to-head online.

A variety of European ISPs, including Germany's T-Online and France's Wanadoo, have launched subscription gaming offers in the past two years to try to make up for a lack of online advertising revenue.

Magazine and newspaper publishers, including Times Newspapers, part of Rupert Murdoch's News Corp. empire and Pearson Plc's Financial Times, have got in on the act too, charging readers for some of their content.

Beauville said consumers are more willing to pay for news online, but cautioned: "Subscriptions will not replace online advertising as the largest revenue stream any time soon."

The survey was generated from a poll of 10,000 Internet users in the United Kingdom, Germany, France, Italy, Spain and Sweden.

nForcer · Jan 7, 2003, 09:57 AM

Like they always say ' you get what you pay for '

dai · Jan 7, 2003, 06:22 PM

if you want it bad enough i guess you will pay for it

One of the Twelve · Jan 8, 2003, 08:48 AM

One of my principles is, that first I download (?) program / whatever, and if I like it, I buy it. I like to test things first - I don't want to buy "disappointments". But having the original copy on the shelf looks cool. It's cool to own a legal copy with all the support & updates you need. And the original copies are not so expensive as I used to think when I was younger.

...how can they plan the future up to 2007?? We'll all be dead by then, or at least I hope so - waiting for Christ to come back - waiting for the armageddon war...

Matth · Jan 8, 2003, 03:58 PM

Pay for content (shiver)

Not something I'd choose to do, but with ad revenue down the toilet, we may have to bite the bullet and accept that our favourite sites will need OUR money for their upkeep.

It was a black day though, when
www.completelyfreesoftware.com - the CFS freeware site, went to a paid membership basis.
That makes it now, the "not really free" software site.

I dislike their worming around the issue - http://www.completelyfreesoftware.com/faqs5.html#11 - as that is not what many people mean by "free" - and I'm sure some freeware authors would also not be very happy - and I'd rather donate to the author, than to that turncoat so-called free software site!

I would hope that others can survive by offerring BETTER services to paid up members.

Faced with a one-off piece of content to pay for, I'd look EVERYWHERE else first, and then consider if it was REALLY worth it.

Vampyromaniac · Jan 8, 2003, 09:40 PM

Quote:

Originally posted by One of the Twelve
We'll all be dead by then, or at least I hope so - waiting for Christ to come back

Last I heard, he couldn't find a good fare on Priceline

muzz · Jan 9, 2003, 03:20 PM

EA Sports is already charging for their online gaming........ I don't play their games online anymore because of it.

You don't have a smily to give you my real opinion on that.

Jan 8, 2003, 08:48 AM	#4
One of the Twelve DriverHeaven Lover Join Date: Jul 2002 Location: The Kold North Posts: 131 Rep Power: 0	One of my principles is, that first I download (?) program / whatever, and if I like it, I buy it. I like to test things first - I don't want to buy "disappointments". But having the original copy on the shelf looks cool. It's cool to own a legal copy with all the support & updates you need. And the original copies are not so expensive as I used to think when I was younger. ...how can they plan the future up to 2007?? We'll all be dead by then, or at least I hope so - waiting for Christ to come back - waiting for the armageddon war... __________________

Jan 8, 2003, 03:58 PM	#5
Matth Flash Banner Hater Join Date: Jun 2002 Location: UK Posts: 3,426 Rep Power: 93 System Specs	Pay for content (shiver) Not something I'd choose to do, but with ad revenue down the toilet, we may have to bite the bullet and accept that our favourite sites will need OUR money for their upkeep. It was a black day though, when www.completelyfreesoftware.com - the CFS freeware site, went to a paid membership basis. That makes it now, the "not really free" software site. I dislike their worming around the issue - http://www.completelyfreesoftware.com/faqs5.html#11 - as that is not what many people mean by "free" - and I'm sure some freeware authors would also not be very happy - and I'd rather donate to the author, than to that turncoat so-called free software site! I would hope that others can survive by offerring BETTER services to paid up members. Faced with a one-off piece of content to pay for, I'd look EVERYWHERE else first, and then consider if it was REALLY worth it. Last edited by Matth; Jan 8, 2003 at 04:04 PM.

Jan 6, 2003, 06:08 PM	#1
Zardon DriverHeaven Founder Join Date: May 2002 Posts: 32,480 Rep Power: 179	Net users may be willing to pay for content after all LONDON (Reuters) â€” The Internet's reputation as a haven for freeloaders is beginning to lose some meaning as research released on Monday suggested the majority of Western European online users are willing to pay for digital content. A survey conducted by Jupiter Research said Internet users' reluctance to pay for online content, ranging from music downloads to news articles, dropped from 47% in 2001 to 41% last year, suggesting media companies may finally see their digital subscription ventures begin to pay off. With online advertising in the doldrums the past two years, media outfits from newspaper publishers to Internet service providers (ISPs) have rolled out a variety of subscription-based offerings aimed at increasing revenues. Jupiter projects Western Europeans will spend 2.5 billion euros ($2.62 billion) by 2007 on all forms of digital content, up from 337 million euros last year. Any increase in consumers' willingness to pay is positive news for struggling Internet companies as it suggests consumers are gradually becoming accustomed to the notion that many forms of online content will come with a price tag some day. "It's very encouraging that more people are willing to pay for content, particularly in the longer term," said Olivier Beauville, a Jupiter analyst. According to Jupiter, 19% said they would pay for song downloads over the Internet, up from 16% a year ago. Major recording labels and retailers have had trouble getting consumers to switch from free file-swapping networks such as Kazaa or LimeWire to their own digital subscription services. Another area of growing consumer demand was video downloads. Thirteen percent of consumers said they were willing to pay for such material compared to three percent a year ago. Beauville cited online gaming as a promising growth area too, forecasting that many avid gamers would spend on average 100 euros to 150 euros annually to download games or pay for the ability to play other gamers head-to-head online. A variety of European ISPs, including Germany's T-Online and France's Wanadoo, have launched subscription gaming offers in the past two years to try to make up for a lack of online advertising revenue. Magazine and newspaper publishers, including Times Newspapers, part of Rupert Murdoch's News Corp. empire and Pearson Plc's Financial Times, have got in on the act too, charging readers for some of their content. Beauville said consumers are more willing to pay for news online, but cautioned: "Subscriptions will not replace online advertising as the largest revenue stream any time soon." The survey was generated from a poll of 10,000 Internet users in the United Kingdom, Germany, France, Italy, Spain and Sweden.

Jan 7, 2003, 09:57 AM	#2
nForcer Twice the fun! Join Date: Jul 2002 Posts: 1,404 Rep Power: 0	Like they always say ' you get what you pay for '

Jan 7, 2003, 06:22 PM	#3
dai DriverHeaven Lover Join Date: Jul 2002 Posts: 126 Rep Power: 0	if you want it bad enough i guess you will pay for it

Jan 9, 2003, 03:20 PM	#7
muzz DriverHeaven Junior Member Join Date: Jun 2002 Location: MA. USA Posts: 29 Rep Power: 0	EA Sports is already charging for their online gaming........ I don't play their games online anymore because of it. You don't have a smily to give you my real opinion on that.