OPA Reports U.S. Consumer Spending For Online Content Totals $853 Million In First Half Of 2004
NEW YORK, NY -- November 15, 2004 -- The Online Publishers Association (OPA) today released its Paid Content U.S. Market Spending Report covering Q1 and Q2 of 2004. The study, conducted by comScore Networks, determined that consumer spending for online content in the U.S. grew to $853 million in the first half of 2004, an increase of 14 percent over the same period last year.
Entertainment/Lifestyles overtook Business/Investment content as the second largest paid content category in the first half of 2004. Spending in the Entertainment category -- fueled primarily by growth in the music segment1 -- grew to $182.8 million in the first half of 2004, a 78.3 percent increase over the same period last year, making it the fastest growing paid content category. Sports (which includes fantasy games) and Games also showed strong gains of 68.7 percent and 27.4 percent, respectively.
"For the first time ever, growth in paid content spending was fueled primarily by consumers using the Internet for entertainment and for fun," said Michael Zimbalist, president of the Online Publishers Association. "This supports a growing body of evidence that consumers' use of the Internet is evolving far beyond functional activities. We believe that online entertainment will continue to grow as broadband proliferates."
While Personals/Dating held its position as the leading paid content category, with U.S. consumers spending $227.9 million in the first half of 2004, spending on both Personals/Dating and Business/Investment content registered slight declines in each of the last three quarters since peaking in Q3 2003. The declines in Personals/Dating reverse a two and a half year period of rapid category growth.
The share of online consumers2 in the U.S. who paid for Web content in Q1 2004 grew to 11.2 percent before falling slightly to 11.0 percent in Q2 2004.
In the first half of 2004, 90 percent of paid content revenue came through subscription sales3 -- the highest percentage yet recorded -- driven by a significant shift from single purchases to the subscription model in the Games, News and Research categories. While a significant portion of spending in the Games category still comes through single purchases, the portion of category sales attributable to subscriptions has grown dramatically over time, up from 48.4 percent in 2002 to 65.3 percent in the first half of 2004.
The information contained in the OPA's Paid Online Content U.S. Market Spending Report is based not on self-reported consumer surveys, but on actual observed purchases of content. comScore Networks calculated the results of the study by passively and electronically monitoring the actual purchase and usage transactions that took place during the analysis period within its representative panel of more than 1.5 million U.S. online consumers.
The full report covering the first half of 2004 can be found at the Online Publishers Association Web site at www.online-publishers.org.
About the Online Publishers Association
Founded in June 2001, the Online Publishers Association (OPA) is an industry trade organization whose mission is to advance the interests of high-quality online publishers before the advertising community, the press, the government and the public. Members of OPA represent the standards in Internet publishing with respect to editorial quality and integrity, credibility and accountability. OPA member sites have a combined, unduplicated reach of 110.5 million visitors, or 73 percent of the total U.S. Internet audience (Source: comScore Media Metrix, February 2004 combined home/work/university data). For more information about the Online Publishers Association, visit www.online-publishers.org.
About comScore Networks
comScore Networks provides unparalleled insight into consumer behavior and attitudes. This capability is based on a massive, global cross-section of more than 2 million consumers who have given comScore explicit permission to confidentially capture their browsing and transaction behavior, including online and offline purchasing. comScore panelists also participate in survey research that captures and integrates their attitudes and intentions. Through its patent-pending technology, comScore measures what matters across a broad spectrum of behavior and attitudes. comScore consultants apply this deep knowledge of customers and competitors to help clients design powerful marketing strategies and tactics that deliver superior ROI. For more information, please visit www.comscore.com.
1) As an important, emerging segment, online music sales were added for the first time to this report and were included in the Entertainment/Lifestyles category. Those music sales reflect a combination of observed and estimated sales. Please refer to Appendix A of the full report at www.online-publishers.org for additional methodological information.
2) Does not include those who may have purchased content in Internet applications as distinct from Web browsers and not elsewhere online. It is anticipated that the full year 2004 report will incorporate such consumers.
3) The subscription and single purchase sales analyses contained in the mid-year 2004 report exclude online music sales taking place in Internet applications (e.g., iTunes, Rhapsody MusicMatch Jukebox, etc.) as distinct from Web browsers. It is anticipated that beginning with the full year 2004 report, these analyses will incorporate observed sales from all major music applications.
Entertainment/Lifestyles overtook Business/Investment content as the second largest paid content category in the first half of 2004. Spending in the Entertainment category -- fueled primarily by growth in the music segment1 -- grew to $182.8 million in the first half of 2004, a 78.3 percent increase over the same period last year, making it the fastest growing paid content category. Sports (which includes fantasy games) and Games also showed strong gains of 68.7 percent and 27.4 percent, respectively.
"For the first time ever, growth in paid content spending was fueled primarily by consumers using the Internet for entertainment and for fun," said Michael Zimbalist, president of the Online Publishers Association. "This supports a growing body of evidence that consumers' use of the Internet is evolving far beyond functional activities. We believe that online entertainment will continue to grow as broadband proliferates."
While Personals/Dating held its position as the leading paid content category, with U.S. consumers spending $227.9 million in the first half of 2004, spending on both Personals/Dating and Business/Investment content registered slight declines in each of the last three quarters since peaking in Q3 2003. The declines in Personals/Dating reverse a two and a half year period of rapid category growth.
The share of online consumers2 in the U.S. who paid for Web content in Q1 2004 grew to 11.2 percent before falling slightly to 11.0 percent in Q2 2004.
In the first half of 2004, 90 percent of paid content revenue came through subscription sales3 -- the highest percentage yet recorded -- driven by a significant shift from single purchases to the subscription model in the Games, News and Research categories. While a significant portion of spending in the Games category still comes through single purchases, the portion of category sales attributable to subscriptions has grown dramatically over time, up from 48.4 percent in 2002 to 65.3 percent in the first half of 2004.
The information contained in the OPA's Paid Online Content U.S. Market Spending Report is based not on self-reported consumer surveys, but on actual observed purchases of content. comScore Networks calculated the results of the study by passively and electronically monitoring the actual purchase and usage transactions that took place during the analysis period within its representative panel of more than 1.5 million U.S. online consumers.
The full report covering the first half of 2004 can be found at the Online Publishers Association Web site at www.online-publishers.org.
About the Online Publishers Association
Founded in June 2001, the Online Publishers Association (OPA) is an industry trade organization whose mission is to advance the interests of high-quality online publishers before the advertising community, the press, the government and the public. Members of OPA represent the standards in Internet publishing with respect to editorial quality and integrity, credibility and accountability. OPA member sites have a combined, unduplicated reach of 110.5 million visitors, or 73 percent of the total U.S. Internet audience (Source: comScore Media Metrix, February 2004 combined home/work/university data). For more information about the Online Publishers Association, visit www.online-publishers.org.
About comScore Networks
comScore Networks provides unparalleled insight into consumer behavior and attitudes. This capability is based on a massive, global cross-section of more than 2 million consumers who have given comScore explicit permission to confidentially capture their browsing and transaction behavior, including online and offline purchasing. comScore panelists also participate in survey research that captures and integrates their attitudes and intentions. Through its patent-pending technology, comScore measures what matters across a broad spectrum of behavior and attitudes. comScore consultants apply this deep knowledge of customers and competitors to help clients design powerful marketing strategies and tactics that deliver superior ROI. For more information, please visit www.comscore.com.
1) As an important, emerging segment, online music sales were added for the first time to this report and were included in the Entertainment/Lifestyles category. Those music sales reflect a combination of observed and estimated sales. Please refer to Appendix A of the full report at www.online-publishers.org for additional methodological information.
2) Does not include those who may have purchased content in Internet applications as distinct from Web browsers and not elsewhere online. It is anticipated that the full year 2004 report will incorporate such consumers.
3) The subscription and single purchase sales analyses contained in the mid-year 2004 report exclude online music sales taking place in Internet applications (e.g., iTunes, Rhapsody MusicMatch Jukebox, etc.) as distinct from Web browsers. It is anticipated that beginning with the full year 2004 report, these analyses will incorporate observed sales from all major music applications.
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