‘Digital content’ is an incredibly broad term, which loosely refers to any digital text, audio, video and images available for distribution and download on electronic media
The market is expected to top US$549 billion by 2019, growing at a CAGR of 13.73 percent over the forecast period.
There are a huge number of factors affecting growth in the Global Digital Content Market, but TechNavio analysts have whittled down the top 10 market growth drivers.
Need for Digitization
This one is pretty self-explanatory. It’s straight up supply and demand— there are more than 3,035 million internet users worldwide, and the increased number of smartphones, tablets, and internet users has led to lots of data consumption and a high demand for digital content.
Low Entry Barriers for Content Developers
The latest tools and software have made it easy to convert existing analog data into digital formats. Anyone who wants to develop and publish digital content can do it for little or no money and with very little technical knowledge.
Initiatives to Curb Piracy in the Digital Content Market
Piracy is one of the main threats to growth in the digital content market. Various initiatives are currently being undertaken to curb piracy rates and provide growth momentum to the market.
Both the US and South Korea have copyright alert systems to keep tabs on music piracy. In Europe, internet service providers have blocked access to The Pirate Bay, which substantially reduced illegal downloading. In addition, online video and music firms are coordinating with search engines like Google to prioritize legitimate sites in search pages.
Increase in Smartphones
The number of smartphones shipped around the world in 2013 was 957 million, and this number is expected to increase to 1,434 million by 2016, as smartphones effectively replace traditional devices like PCs, laptops, and phones.
Increased Internet Penetration
How many times have you been at a café, or even a bar and someone has asked for the Wi-Fi password? Internet is everywhere which obviously makes digital content much easier to access.
In short, more cellphones + better, more accessible internet = demand for digital content!
Upsurge in Subscription Services
Subscription services have become extremely popular as an easy, inexpensive and legal way for consumers to access videos and music. Services like Spotify and Netflix are upping the need for high-quality digital content, which is affecting market growth as a whole.
Increase in Online Video Audience
In 2014, the number of videos watched online more than doubled from 2012. The number of videos has increased, as well as the range of topics these videos cover. And people are accessing this content from mobiles, tablets, laptops, and IPTV sets rather than just their desktops. The increase in the online video audience is driving a large number of marketers to invest in online video advertising, driving the Global Digital Content Market.
New Potential for Ebooks
The invention of e-readers combined with a surge in the use of iPads, tablets, and smartphones, and the high discount policy on e-book prices have prompted large publishing houses to enhance their presence in the E-books market.
Large companies in this segment have implemented initiatives such as ensuring the availability of their respective books in e-book formats that are compatible with all platforms, which is increasing the amount of digital content available.
Advent of Digital Access
One of the major drivers propelling the growth of the Global Digital Content Market is digital downloads. The latest generation of home entertainment devices are coming equipped with Wi-Fi, network connectivity, and HDD, which enable direct access to downloadable content. On top of that, online streaming services such as Netflix, Hulu, and YouTube provide instant access to online content.
Ongoing TV Network Digitization Process
The ongoing digitization process in developing economies is one of the major drivers of the Global Digital Content Market. In 2013, the digital TV penetration rate was:
- 92 percent in North America
- 79 percent in Europe
- 65 percent in Latin America
- 49 percent in the APAC region
- 48 percent in the MEA region.
This provides further scope for the development of the market during the forecast period.
