A new report from Juniper Research has found that the value of the global digital content market will reach $154 billion annually by 2019, an increase of nearly 60% on 2014.
The new research, Digital Content Business Models: OTT & Operator Strategies 2015-2019, observed that mobile and online games would account for the largest share of content sales (38% of cumulative revenues), with game formats continuing to transition from physical to digital. It cited the success of platforms such as Valve’s Steam (which now has over 125 million active accounts worldwide) as key drivers in this evolution, while revenues from consoles/handhelds were diminishing as players migrated their gameplay to tablets and higher-end smartphones.
The research noted that leading OTT (Over The Top) players such as Apple, Google and Amazon were in pole position to capitalise on this transition, with each now offering cloud-based solutions both for personal storage and premium content access. It argued that if consumers are tied into multiple products from an OTT, those consumers becomes increasingly reluctant to churn away from one element of the brand, as he/she loses access to content across their devices.