Consumers spent nearly $1 billion for online content during the first
six months of the year, according to the Online Publishers Association,
a New York-based trade group. Almost a quarter of the dollars went for
what the association described as entertainment and lifestyle material,
such as digital music. Michael Zimbalist, OPA's president, said online
spending for content will continue to grow, fueled by the availability
of broadband Internet connections. The downside to his report was its
finding that nearly nine in 10 Web users didn't pay for any content.
Web sites offering research services, games and online dating showed
gains, but general news sites -- such as NYTimes.com (NYT) and
Washingtonpost.com (WPO) -- experienced a 14% decline in consumer
spending. "Although revenue for general news is down, compared to
spending in the second half of 2004, showings by business
content/investment content (the third-largest revenue producer)
indicate that consumers readily turn to the Internet for information," the
report said. The report can be downloaded at:
http://www.online-publishers.org/pdf/paid_content_report_oct05.pdf
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