JupiterResearch: Consumer Resistance to Paid Content Stays High

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Consumer resistance to paying for content online remains high, though adoption is up slightly, according to a new JupiterResearch report.

The New York market researcher found adoption is up from last year, albeit 64 percent of adults still said they wouldn't pay for content to avoid online advertising. However, 31 percent of online adults paid for content over the Internet, up 5 percentage points from last year.

Paid content spending across categories is expected to grow 31 percent this year to $3.8 billion, gradually rising to $8.9 billion in 2010, JupiterResearch said.

Measured separately, general content excluding games and music will grow slowly but steadily from $2.1 billion this year to $3 billion in 2010. Consumer utility services will grow from $1.2 billion this year to $2.2 billion in 2010.

Broadband and network effects will be largely responsible for propelling the fastest-growing general content categories online like audio/video, health, sports and community.

The results are available in JupiterResearch's "Paid Content and Services Forecast 2005-2010." The paid content findings contrast with an earlier JupiterResearch report that claimed online advertising will grow 28 percent this year after posting a 41 percent increase in 2004.


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