All of us Internet Users struggle with the concept of paid content. That does not mean we are not willing to pay for the right content as referenced by PEW’s recent survey. It depends on the type of content; the age and demographics of users, and indicates a significant adoption of the concept.
Significantly, two-thirds of Internet Users or 65% have paid for content recently. The statistics seem startling, but that fact indicates a growing market for those companies willing to offer consumers value for what is perceived as notable worth. Mostly downloads and access to apps, music, software, articles, games, ringtones, videos, movies, and the list goes on.
The resounding take-away is that consumers will pay for in-demand items. But the price they are willing to pay is mostly limited to the $10.00 threshold. Anything over that seems to discourage the value proposition. You can see this trend with Netflix and others who are pricing within that range. Companies should be happy about the survey yet, cognizant of the price-value relationship with the consumer.
|33%||paid for digital music online|
|33%||paid for software|
|21%||paid for apps for their cell phones or tablet computers|
|19%||paid for digital games|
|18%||paid for digital newspaper, magazine, or journal articles or reports|
|16%||paid for videos, movies, or TV shows|
|15%||paid for ringtones|
|12%||paid for digital photos|
|11%||paid for members-only premium content from a website that has other free material on it|
|10%||paid for e-books|
|7%||paid for podcasts|
|5%||paid for tools or materials to use in video or computer games|
|5%||paid for “cheats or codes” to help them in video games|
|5%||paid to access particular websites such as online dating sites or services|
|2%||paid for adult content|
Survey was conducted by Princeton University between Oct 21 and Nov 1, 2010 with a total of 1003 national sample surveyed. Interviews were conducted with 672-landline, and 331 cell-phone users of which 134 had no landline service. The Margin of error included +/- 3.7% points.
Dive into Paid Content or risk losing Market Share
There are those who believe so strongly in the Paid Content concept that not having an online presence with charges for content delivered will condemn companies to the sidelines of market share. That is a strong statement, but one worth mulling over as Internet users continue to gain confidence in transacting over the medium. Businesses are beginning to see the benefits of building revenue streams especially as mobile content access continues to grow at a rapid pace.
Growth in e-commerce continues to gain ground during the holiday season as e-retailers see a record gain in sales, up 12% compared to the same time last year. It seems that targeted research online retailers are performing on consumers are helping to offer them what they want, when they want it, and at an attractive price. See (a sales season to cheer about) from Internet Retailer.