J’son & Partners Consulting presents main results of the research: RUSSIAN AND GLOBAL Digital content market development, results of 2013.

 

DIGITAL CONTENT MARKET DESCRIPTION

 

The development of distribution channels and consumption of digital content became extremely vital, in terms when people stepped out of the new era – era of digital information, internet and computer technologies, cellular communication and mobile devices.

 

The necessity in entertainment and informational content (games, social networks, music, video, e-books) is growing together with mobile devices penetration (smartphones and tablet PCs), which also stimulate the active consumption of such services.

 

Visible changes have happened in population’s needs. People all around the world feel the necessity to be always available, Internet became a “must” access resource towards information. Mobile phone is not only the voice communication channel: for most users, mobile device – is an access to favorite music and video (to share with friends), movies (can be viewed in public transport, at home or on vacation); social networks (to connect with friends).

 

Mobile phone is also a channel for consumption of information content – e-books, study books for education, informational and entertainment purposes.

 

Modern person – targeted audience for telecom companies – does not see himself out of informational era. This person feels strong necessity in different categories of digital content via PC, notebook and, most often via tablet PC and smartphone.

 

Digital content – wide range of informational and entertainment materials, which are being distributed in a digital form via communication channels; they aimed to be used on digital devices, such as, computer, mobile terminal, specialized devices. Digital content can be presented as games, video, audio or text.

 

J’son & Partners Consulting presents brief overview  on digital media content market, sales via internet and other remote communication channels (distribution via physical devices have not been considered).

 

Global digital content market

 

J’son & Partners Consulting: Global Digital Content Market reached 106 bln.USD in 2013 that is 12% more than in the previous year. The market will grow in 2014 – 2016 with average growth rate of 11% and most likely will hit 133 bln.USD in 2016.

 

 

The largest market is USA (27%), second place – Japan (14%), next are UK and South Korea (per 4%), Russia has 2% (result of 2013).

 

 

Key global digital content market drivers:

 

• increase of consumers expenditures in developed countries;
• increase in sales of smartphones and tablet PCs in the world as well as an increasing their penetration, especially in developing countries;
• increasing popularity of social networks, mobile games, streaming services;
• increasing popularity of mobile apps, which are an important instrument for digital content promotion; according to App Annie data, apps’ consumption increased 2,3 times for the year;
• changes in consumers’ behavior, changes in population necessities – focus towards mobile devices, internet, digital content;
• legislation in the sphere of content distribution – the goal is to protect the rights of right holders.

 

Key global digital content market Barriers:

 

• the culture to pay for the content is not established – users mostly listen music, read books, watch movies for free;
• free services, in most cases, also very comfortable to use, have smart interface same as paid versions – decrease the necessity to make purchases;
• technological barrier: throughput networks’ capacity, low penetration of digital devices in developing countries;
• high level of piracy in a lot of countries

 

DIGITAL CONTENT MARKETS IN DIFFERENT COUNTRIES

 

Game content prevails over other market segments in USA, UK, Japan, South Korea and Russia: 53% market revenues in USA and till 91% in Russia. But the decreasing tendency of game share is being fixed on many markets in a general revenue structure due growth of other segments – especially video content and digital music.

 

As for the Russian Digital Content Market, game segment took almost the whole market – 91% in 2013. Its share decreased for 8% in comparison with 2010, at that time games have 99% of the market; this proves that market is developing from the beginning towards development stage. Changes in consumers’ behavior and preferences influence the market – people are not afraid anymore to pay by banking cards via Internet or subscribers operators’ accounts. Moreover, people start to consume more. Despite the fact that share of those who pays is still relatively small, share of those who are ready to pay regularly is increasing, despite  the availability of piracy copes.

 

 

RUSSIAN DIGITAL CONTENT MARKET

 

 

J’son & Partners Consulting: Digital Content Market in Russia was 2 bln. USD in 2013 and will reach 3.5 bln. USD by 2016. Thus, Russian share on the global digital content market will reach 2.4%.

 

 

Major Russian Digital Content Market Tendencies:

• growth of game market and its simultaneous share decrease due to the increase of other digital content sectors - market transition from the beginning to active stage of development;
• increasing number of digital devices owned by population, which can consume digital content – smartphones and tablet PC;
• development of mobile content – key growth driver for digital content market, will facilitate the growth of all segments;
• dashing growth of “heavy content” (video and music); new market players; distribution of streaming models and models to view video content with special option – to switch off the advertising etc.
• steady increase in the segment of e-books together with changes in public preferences: from print books towards e-books (digital);
• continuous fight with illegal content: nowadays the level of piracy is still very high;
• consuming capacity remains on a lower level vs USA and Western European countries.

 

Detailed results of the Research are presented in the full version of the Report:DIGITAL CONTENT MARKET DEVELOPMENT IN RUSSIA AND IN THE WORLD, RESULTS OF 2013 (175 p)

 

1. RESUME

2. INTRODUCTION

  2.1. Digital Content Ecosystem

  2.2. Key Definitions

  2.3. Prerequisites for digital content market development in Russia and the rest of the world.

3. RUSSIAN AND GLOBAL DIGITAL CONTENT MARKETS, 2010-2016: Volume and Market Growth Forecast, Market Structure, Audience

  3.1. Audio Content Market in Russia and in the world, 2010-2016

      3.1.1. Global Audio Content Market volume

      3.1.2. Audio Content Market in some countries

      3.1.3. Russian Audio Content Market

  3.2. Video Content Market in Russia and in the world, 2010-2016

      3.2.1. Global Video Content Market volume

      3.2.2. Video Content Market in some countries (USA, Europe, SEA)

      3.2.3. Russian Video Content Market

  3.3. E-Books Market in Russia and in the world, 2010-2016

      3.3.1. Global E-Books Market volume

      3.3.2. E-Books Market in some countries (USA, Europe, SEA)

      3.3.3. Russian E-Books Market

  3.4. E-Games Market in Russia and in the world, 2010-2016

      3.4.1. Global E-Games Market volume

      3.4.2. E-Games Market in some countries (USA, Europe, SEA)

      3.4.3. Russian E-Games Market

4. Development of the Market: Devices with Access to Digital Content

  4.1. Smartphones and Tablet Market

  4.2. Set-Top Box Market

  4.3. Connected TV Market

  4.4. Devices for reading E-Books

5. Largest Global and Russian Digital Content Distributors and Developers

  5.1. Audio Content Distributors

  5.2. Video Content Distributors

      5.2.1. Digital TV Operators

      5.2.2. Online-Video Content Distributors

  5.3. E-Books Distributors

  5.4. E-Games Distributors

  5.5. Mobile Content Distributors

7. Russian Digital Market Drivers and Barriers

8. Key results of the Research

9. Conclusion

10. List of Companies mentioned in the Report

 

List of Figures

Figure 1. Previous content distribution model

Figure 2. New content distribution model

Figure 3. Global Digital Content Market, bln.USD, 2010-2016

Figure 4. Global Digital Content Market structure, bln.USD, 2010-2016

Figure 5. Russian Digital Content Market, bln.USD, 2010-2016

Figure 6. Global E-music Content Market, bln.USD, 2012-2013

Figure 7. Global E-Music Content Market, bln.USD, 2008-2013

Figure 8.Global Digital Music by format, 2008-2013

Figure 9. Share of internet users, subscribers of music content/who downloads music content for the last 6 months by countries, data actuality – November 2013

Figure 10. Digital Music market in USA

Figure 11. Share of Streaming music services USA of the total revenue volume in music industry, %, 2007-2013

Figure 12. Number of subscriber for audio content in USA, mln. subscribers, 2005-2013

Figure 13. Music market in UK, mln.USD, 2011-2013

Figure 14. Digital Music Market in Japan: By format, %, 2013; bln.USD, 2010-2016

Figure 15. Digital Music Market in South Korea: By format, %, 2013; bln.USD, 2010-2016

Figure 16. Digital Music Market in Russia, mln.USD, 2010-2016

Figure 17. Global Video Market, bln.USD, 2010-2018

Figure 18. Global Online Video Market by segments, 2010-2018

Figure 19. Video Market in USA, bln.USD, 2010-2018

Figure 20. Total amount of video views in USA by platforms

Figure 21. Internet users, who uploads video or those who watches video online at least once per month, 2013

Figure 22. Mobile Video Market in USA

Figure 23. Online Video Market in UK, mln.USD, 2010-2016

Figure 24. Consumption of digital content by countries, 2013

Figure 25. Yearly consumption of digital content in Japan, 2013

Figure 26. Online Video Market in Japan, mln.USD, 2010-2016

Figure 27. Yearly consumption of digital content in South Korea, 2013

Figure 28. Online Video Market in South Korea, bln.USD, 2010-2016

Figure 29. Russian Digital Market, mln.USD, 2010-2017

Figure 30. Russian Pay TV market volume, penetration of Pay TV, 2012-2018

Figure 31. Russian Pay TV market volume, average ARPU, 2012-2018

Figure 32. VOD market OTT indicators, pcs. and $, 2011-2017

Figure 33. Global E-Books Market, bln.USD, 2011-2015

Figure 34. E-Books market in the world, 2010-2016

Figure 35. Global E-Books market by countries, 2013

Figure 36. E-Books Market in USA, bln.USD, 2010-2016

Figure 37. E-Books Market in UK, mln.USD, 2010-2016

Figure 38. E-Books Market in Japan, mln.USD, 2010-2016

Figure 39. E-Books Market in South Korea, mln.USD, 2010-2016

Figure 40. Russian E-Books Market, mln.USD, 2010-2016

Figure 41. Global E-Games Market, bln.USD, 2012-2017

Figure 42. Global Mobile Games Market

Figure 43. Games Market Structure by type of gamers’ devices, bln.USD, 2013

Figure 44. Games Market Structure by users (gamers) depending on the type of the device, bln. people, 2013

Figure 45. Games Market in USA, bln.USD, 2010-2013

Figure 46  Games Market in USA, mln.pcs, 2010-2013

Figure 47. Types of online games, the most popular, 2013

Figure 48. Types of online games, the most popular, 2013

Figure 49. The number of gamers in USA by market segment, mln. gamers, 2013

Figure 50. Social-demographic characteristics of mobile gamers in USA, 1H2014

Figure 51. Mobile Games Market in USA, mln.USD, 2010-2016

Figure 52. Number of gamers in UK by market segments, mln. gamers, 2013

Figure 53. Games Market in UK, bln.USD, 2010-2016

Figure 54. Games Market in Japan, bln.USD, 2010-2016

Figure 55. Games Market in South Korea, mln.USD, 2010-2016

Figure 56. Russian Games Market, mln.USD, 2010-2016

Figure 57. Russian Online Games Market, mln.USD, 2010-2016

Figure 58. Consoles/PC as games market segment in Russia, mln.USD, 2010-2016

Figure 59. Russian Mobile Games Market, mln.USD, 2010-2016

Figure 60. Smartphones Market Volume, bln.pcs., 2010 – 1Q2014, 2014F

Figure 61. Russian Smartphones Market Volume, mln.pcs., 2010-2014

Figure 62. Smartphones’ share in the total sales of mobile terminals, %, Russia, 2009-2014

Figure 63. Global Tablet PC Market volume, mln.pcs., 2011-2014

Figure 64. Russian Tablet PC Market volume, mln.pcs., 2010-2014

Figure 65. Dynamics of STB devices sales globally, mln.pcs., 2012-2017

Figure 66. STB sales forecast in Russia, mln.pcs., 2010-2018

Figure 67. Smart TV sales volume and average price in the world, 2011-2017

Figure 68. Sales of TV sets in Russia, pcs., 2012-2018

Figure 69. Sales of TV sets in Russia,$, 2012-2018

Figure 70. Russian Smart TV Market volume, 2012-2017

Figure 71. Installed base of Smart TV in Russia, mln.pcs., 2010-2015

Figure 72. Global Readers Market dynamics, mln.pcs., 2010-2016

Figure 73. Russian Readers Market dynamics, mln.RUB, 2010-2016

 

LIST OF TABLES

Table 1. Global Digital Content Market development stages, 1970-2014

Table 2. Key market players of the global e-games market, actuality – May 2014

Table 3. Key market players of the global e-games market, actuality – May 2014

Table 4. TOP 10 apps in Samsung Apps shop by Samsung

 

This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.

 

J’son & Partners Consulting presents main results of the research: RUSSIAN AND GLOBAL Digital content market development, results of 2013.