• by August 1, 2002

Despite conventional wisdom that consumers won’t pay for online content, a study released today finds that more and more consumers are doing just that.

The study, commissioned by the Online Publishers Association and conducted by comScore networks, found that $675 million was spent for online content in the United States in 2001 – a 92% increase over 2000. Q1 2002 spending jumped 155% to $300 million compared to the same period in 2001.

The Online Publishers Association said a jump in the number of online content buyers – 12.4 million in Q1 2002, up 5.3 million – contributed to the growth in online content revenues. Consumers of paid content represented 9.2% of the total Internet population, the study said.

Spending in nearly all content categories rose 100% in Q1. The top three categories – Business Content, Entertainment and Personals/Dating – accounted for 59% of online spending.

Michael Zimbalist, executive director of the Online Publishers Association, said the study showed the market undergoing rapid growth.

”As content providers get smarter about creating valuable for-pay offerings, an increasing number of consumers are responding with their wallets,” he said.

The study also found:

About 1,700 sites are charging for online content, with 85% of money spent by U.S. consumers for online content going to the top 50 sites.

Average spending per consumer rose 46% in Q1 compared to Q1 2001.

Subscriptions are the dominant pricing model, accounting for 85% of paid content sales in 2001. Single purchases accounted for only 15% of sales.

Annual subscription renewal rates average 72%.

The top 10 web destinations ranked by consumer content revenues are: real.com; wsj.com; match.com; yahoo.com; consumerreports.org; ancestry.com; weightwatchers.com; 1800ussearch.com; matchmaker.com; and consumerinfo.com.