Paid Content Booms Online

Digital Consumers Are Willing to Open Wallets for Premium Content, Services

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The dominant business model for internet companies is ad-supported revenue. But that's not the only option, as Apple's iTunes has made clear. More and more, people are paying for ad-free options, and some sites are having tremendous success charging for premium content and services, helping diversify revenue streams for internet companies.
Mike Vorhaus is senior VP-managing director, new media and strategy for Frank N. Magid Associates.
Mike Vorhaus is senior VP-managing director, new media and strategy for Frank N. Magid Associates. Credit: Stephanie Diani

So what kind of content and services make people most willing to open their wallets? A wide range -- including games, anti-spam and anti-virus services, entertainment content, adult content, and dating and financial services.

In fact, almost 20% of internet users have paid fees for content or services other than their access to the internet -- this has more than doubled in the past four years. Men, a difficult demo to reach with advertising, appear more willing to pay for content and services than women, by almost 2 to 1. The 25-to-54 demo tends to be less price-conscious.
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