European Paid Content Revenue To Grow By 65%, Reaching €10.2 Billion By 2017

With successful paid services for music, video, games, and news now available in Europe, the number of online content buyers in Western Europe is set to grow between 8% and 12% over the next five years, and revenue from paid content is set to grow 65% — from €6.2 billion in 2012 to €10.2 billion by 2017 — according to a report Forrester released. This growth is being driven by the proliferation of connected devices, crackdowns on piracy, and the increasing popularity of subscription-based models such as Spotify and Netflix. But the very services behind this growth are causing havoc for marketers, as they limit pure advertising opportunities by pushing ad-free content.

“Marketers’ traditional advertising tactics face a new disruption: paid content,” writes Forrester analyst Darika Ahrens in her report. “As a result, the opportunities for firms to reach consumers are splintering. Digital marketers must respond by developing content capabilities: Own content properties, establish sponsorships, and craft content marketing strategies.”

The forecast revenues indicate that consumers are now willing to pay for (ad-free) content, when for years many consumers have been claiming the opposite. This is a trend that content providers will predominantly monetize with subscription models, according to Darika. The potential impact on marketers is huge: Forrester forecasts that by 2017 in Europe, 20% of tablet users will pay for news, the online game buying population will have increased 27%, 60% of video buying will be digital, and the number of music subscribers will double.

Source: Forrester