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The contribution of the Internet to content creation

Michael Kende Senior Adviser, Consulting
Mark Colville Principal, Consulting

We have seen evidence that while, in some cases, traditional methods of content distribution are declining in popularity and being displaced by online distribution, overall growth persists.

InternetKey findings from the report show that the recent global decline in recorded music spend has turned the corner, as a result of increasing volumes of online music sales. The picture is similar for home video spend, with over-the-top and streamed content set to drive overall growth in the near future.

Given the high and growing penetration of Internet-capable devices such as smartphones and tablets, the trend towards online distribution driving overall content revenue growth is set to continue.

By making rights available for online distribution, content providers are not only able to shrink the demand for pirated content, but also to expand their markets and overcome corresponding decreases in the sale of physical content.

The report, commissioned by the Internet Society, finds that while online distribution does present some threats to the businesses of content owners, it allows for even greater opportunities. These are already being exploited to a substantial degree and there is large potential for further growth related to the online distribution of content in the future.

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