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Jupiter Says Free-To-Fee Is Not a Laydown

Jupiter Says Free-To-Fee Is Not a Laydown

According to Jupiter's new market forecast for paid content presented at the ninth annual Jupiter Media Forum, revenues from paid online content will grow to only $5.8 billion by 2006 - up from $1.4 billion in 2002. More specifically:
- revenues for general content will reach $2.3 billion in 2006 (up from $700 million in 2001)
- revenues from online games will reach $1.8 billion (up from $260 million)
- digital music will reach $1.7 billion(up from $30 million)

And, from a March 2002 Consumer Survey, Jupiter also reveals that 70 percent of online adults cannot understand why anyone would pay for content online. David Card, Jupiter vice president and senior analyst says, " While there is money to be made in the online content business, Jupiter's latest survey and market forecast numbers indicate that the mass market still largely shuns anything that smells like a subscription online."

According to the March 2002 Jupiter Consumer Survey, 42 percent of online adults expect over time that people will have to pay for content on the Internet, worsening somewhat since August 2000, when 45 percent of respondents answered the question in the same way.

Based on the latest Nielsen numbers of site users, consumers are least willing to pay for content on today's most popular sites. According to the recent survey, fewer than six percent of online consumers would be willing to pay for content for kids, sports, video or shopping aids.

Genres expected to generate the least revenue in 2006 include:
- consumer/shopping aids ($85 million)
- content for kids ($95 million)
- sports content ($95 million)

The highest revenue generating genres in 2006 will be:
- audio/video entertainment ($600 million)
- adult entertainment ($400 million)
- financial and business news content ($350 million)

Read more here.

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