Paid Online Content Grows 155%.

The Online Publishers Association announced the results of its first U.S. Market Spending Report for paid online content.

The study, conducted by comScore Networks, determined that U.S. consumers spent $675 million for online content in 2001, a 92 percent increase over 2000 spending levels. Further, industry growth accelerated into the current year, as U.S. consumers spent $300 million for online content in the first quarter of 2002, a 155 percent increase over the same quarter last year.

The OPA/comScore study found that spending in nearly all content categories grew more than 100 percent in the first quarter of 2002 versus the same quarter last year. In the first quarter of 2002, the top three categories – Business Content, Entertainment and Personals/Dating – accounted for 59 percent of all online content spending.

A sharp increase in the number of online content buyers was a primary driver of sales growth, the study indicated. 12.4 million U.S. consumers paid for online content in the first quarter of 2002, up 5.3 million from the same period last year. As a percent of the total Internet population, consumers of paid content increased from 5.3 percent in the first quarter of 2001 to 9.2 percent in the first quarter of 2002.

“These data clearly show a market undergoing rapid growth. As content providers get smarter about creating valuable for-pay offerings, an increasing number of consumers are responding with their wallets,” said Michael Zimbalist, executive director of the Online Publishers Association. “With this report and through regular updates, the OPA hopes to add clarity to the increasingly important role of paid content in online publishing.”

“The OPA/comScore study reveals that consumers will indeed pay for quality digital goods and services delivered where and when they choose,” added Dan Hess, vice president of comScore Networks. “We’ve clearly established that there’s a world of opportunity for publishers who deliver premium content online.”

Highlights of the OPA Paid Content U.S. Market Spending Report:

— Majority of Spending on a Minority of Sites – According to the research, 1,700 sites are estimated to be to charging for
content online, with 85% of money spent by U.S. consumers for online content going to the top 50 of those sites. (See below
for top 25 ranking.)

— Individual Spending on the Rise – Average spending per consumer increased 46 percent in the first quarter of 2002
compared to the same period last year.

— Subscriptions Dominate – Subscriptions are the dominant pricing model, accounting for 85 percent of paid content sales
in 2001. Single purchases accounted for only 15 percent of sales.

— Renewal Rates Online are Strong – Renewal rates for annual subscriptions averaged 72%. 74% of those who subscribed for
monthly payments were still visiting fee-restricted content areas 12 months later.