Niche areas to boost digital content 105%
It's full speed ahead for monetising immersive reality and smart speakers as new research points to a 105% increase in the value of digital content within five years.
A study from Juniper Research said the market could be worth US$432 billion by 2026, compared to $211 billion in 2021, driving the need for service providers to turn to "niche areas" for a competitive advantage.
The predicted value has accounted for pay-per-download revenue, in app content spend, subscription revenue and ad spend over digital content.
Report co-author Saidat Giwa-Osagie said: "Over half of digital content spend will come from smartphones. However, as subscriptions become increasingly competitive, niche areas, such as augmented and virtual reality, will need to be considered when onboarding content partners."
On this point, the report said two key device channels are expected to provide new revenue opportunities over the next five years: reality headsets and smart speakers. In fact, revenue attributable to these device categories will grow from $2.4 billion in 2021, to $8.1 billion by 2026; representing a growth of 275%.
The growth will be concentrated in Europe and the US, which when combined will account for more than 50% of revenue for immersive reality headsets and smart speakers by 2026. It is anticipated that high device ownership will result in these regions providing the most opportunities for monetisation over the next five years.
The study, Digital Content Monetisation: Emerging Opportunities, Future Outlook & Market Forecasts 2021-2026, identified digital games as the sector set to generate the highest revenue by 2026; accounting for 45% of the global market value.
It predicted that, as subscription services increase in popularity, digital games providers must differentiate their services through unique content. It also highlighted the immediate need for partnerships between digital content platforms and niche content to best position services for future growth.