Benefits of Online Distribution of Content Outweigh the Costs

Jun 18, 2013

According to a report from Analysys Mason, by making rights available for online distribution, content providers are not only able to shrink the demand for pirated content, but also to expand their markets and overcome corresponding decreases in the sale of physical content. The report, commissioned by the Internet Society, found that while online distribution does present some threats to the businesses of content owners, it allows for even greater opportunities.

Key findings from the report show that the recent global decline in recorded music spend has turned the corner, as a result of increasing volumes of online music sales. The picture is similar for the home video market, with over-the-top and streamed content set to drive overall growth in the near future. Given the high and growing penetration of internet-capable devices, the trend towards online distribution driving overall content revenue growth is set to continue.

The report also highlights a number of new business models that have helped to drive growth in the online content distribution market. At the same time, existing channels and pay-TV retailers are increasingly offering online access as a means to retain customers and promote increased viewing.