Wednesday 7 November 2012

Media News | "Online paid-content market poses threat to traditional advertising"


  • The rise of tablets and smartphones will help grow the online paid-content market 65% to £8bn a year by 2017
  • But the rise of paid-for services on mobile devices and tablets could limit advertising revenue opportunities 
  • News content spend will grow by 77% from €158m this year to €279m in 2017,
    • This includes digital subscriptions to newspapers such as the Financial Times, New York Times, Wall Street Journal Europe, the Times and Sunday Times.
  • The number of people choosing to buy news content online will jump 68% from 4.8 million to 8.1 million, with 20% of tablet users choosing to do so by 2017 
  • Darika Ahrens critises this veiw and says that consumers will not pay for online content.
  • The report argues that subscription services will be the most successful paid-for model.
  • However, the knock-on effect of the rise of paid-for services is the loss of digital "pure advertising" opportunities for companies.
This shows how the increase in use of tablets has altered the way in which people access content. Due to the fact that portable internet had developed and has become just as adcvanced as broadband; people use it just as regularly, possible even more than broadband. Therefore, as it is more convenient people are more likely to pay to use it as they can use it more. This also displays the impact tablets have on businesses and how it can shift the traditional format even though its just a more portable version of the interent.

http://www.guardian.co.uk/media/2012/nov/01/online-paid-contect-rise-8-billion-pounds

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