Digitization is positive for the media industry – more users are willing to pay for digital content

According to a study  assigned by Google (and performed by the consulting company  Booz & Company) the structural change caused by the digitization of media helps the media industry to develop. The segments books, cinema, TV and music could increase their revenues since 2001 to nearly 200 billion Euros. This is a growth of 2 percent. This growth has compensated the loss in the analogue business.

According to the study the importance of the Internet in terms of media usage is also growing. The average time for a European consuming media via Internet is currently 4 hours: 2 hours TV, 0.7 for newspapers and magazines and 1.3 hours for Internet content in general.

A major result of the study was that more and more users are willing to pay for digital content. Currently Europeans spend in average 4 cents for content per hour, which is an increase of 140% since 2003. However the numbers for offline consumption – 17 cent for TV and 23 cents for print media – make it quite clear  that the media industry still wants to keep the old distribution channels for a while. On the other hand for the creatives the new digital channels are a direct connection to customers and have a clear advantage to the existing channels.

The German market share for the media industry is currently 40 billion Euros, which is an increase of 1 billion Euro since 2001. 7 billion Euros are from digital channels, and they grew by 9%. The Internet consumption by the Germans is currently in average 1.1 hours per day, which is significantly below the European average.

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