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Broadband Creates A Content Business Model

Profit Models Will Vary By Genre, But Advertising Will Dominate
by Brian Haven

February 6, 2006

The content business model has arrived. Fueled by broadband, the number of consumers paying for online content increased 38% in 2005, and average individual spending for online content increased to $88 per year, a 14% gain over 2004. However, online advertising still dominates the business model, with spending on search engine marketing and display advertising increasing to over $13 billion in 2005. Media companies must assess audience demands, content sources, and the necessary technology to ascertain the best method for making money from online content.

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