• by Wendy Davis  @wendyndavis, March 14, 2006

Propelled by a burgeoning market in downloadable music and videos, U.S. consumer spending on content surged to $2 billion last year--marking a 15 percent increase from 2004, according to new research by the Online Publishers Association.

In the fourth quarter alone, spending on paid content reached a record $534 million, up 13 percent from the $472 million spent in the last three months of 2004.

For the first time, consumer spending in the entertainment and lifestyle category surpassed spending in all other categories--including dating sites, the former leader. Entertainment and lifestyle spending surged to $574 million--up from $413 in 2004--while spending for online personals and dating reached $503 million, compared to 2004's $469.5 million.

Spending for investment and business content also posted a small increase--$320 million last year, compared to $313 million in 2004. Other categories posting gains included research, which garnered $152 million, up from $115 million in 2004; personal growth, which took in $117 million, up from $96.5 million; games, which accounted for $108 million, compared to $89 million; greeting cards, which drew $46 million, compared to $43 million; and credit help, responsible for $28 million, up from $27 million.

General news sites, meanwhile, saw a spending drop to $78 million last year, down 10 percent from $88 million in 2004. Also falling were community-made directories, which saw spending fall to $65 million from $70.5 million; and sports, which dropped to $51 million from $53 million.

Subscriptions continued to be the most common pricing model, accounting for 78 percent of total revenue. But revenues from single purchases, such as music downloads, continued to grow. Last year, single purchases accounted for 22 percent of content revenues, up from 15 percent in 2004.