E-COMMERCE
Consumer stance on paid content shifts
06-01-2003
by
Most European consumers are still unwilling to pay for on-line content, but thanks to broadband rollout a gradual shift in attitude is underway.
New research in the UK, Germany, France, Spain, Italy and Sweden has revealed that 41 percent of European Internet users still refuse to pay for content on the Web. However, this figure has improved from 47 percent a year ago.
Moreover, research firm Jupiter has said that users who have a broadband connection are "significantly" more likely to pay for on-line content compared to those using dial-up. According to the firm, about 25 percent of broadband Internet users said they would pay for music over the Internet, compared to just 18 percent of narrowband (dial-up) users. Similarly, about 18 percent of broadband users claim they would be willing to buy video over the Web, compared to a mere 11 percent of dial-up subscribers.
Olivier Beauvillain, analyst at Jupiter Research, told ElectricNews.Net that although the difference in purchasing habits between dial-up and broadband users was only a few percentage points, he said that trends in the research were clear.
"There has not been a dramatic shift in the minds of European Internet users when it comes to paying for on-line content, but rather a gradual change," he said. "The good news is that broadband appears to be the main driver behind this change -- broadband Internet users are far more likely to pay for music, gaming and video content than dial-up users."
According to Beauvillain, broadband users are typically Internet veterans who spend more time on the Web and have richer on-line experiences, and these are some of the same reasons why they are more willing to pay for content.
Other details in the report said men are marginally more willing to pay for content than women and that 15 to 24-year-olds are the most likely to pay for on-line games. Those in the 15 to 44-year-old age bracket have a relatively high willingness to pay for music on-line, and those between the ages of 15 and 34 are most likely to pay for video.
News was the category that had the broadest appeal, Beauvillain said, as a high number of consumers in most age groups between 15 and 55 said they were prepared to buy this type of Internet content.
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