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Global Content Provider Industry

With the global internet user base continuing to soar, content providers are aiming their goods and services at an ever-increasing number of potential consumers. The global online content industry can be divided into two categories: the provision of content and the provision of the technology required to enable internet users to read that content.

Content providers can both create and buy content for sale through the internet. For example, a provider of online business intelligence may create industry reports in-house and then out-source or purchase other reports from a research outfit or journalist to sell through its website to offer comprehensive content.

Technology providers can offer both the necessary technological expertise involved in accessing reading content and the content itself.

Key Market Segments

The world content delivery network (CDN) is expected to exceed $4.6 billion by 2015, according to research from Global Industry Analysts. Market growth is fuelled by the use of rich-media files in numerous industries, including entertainment, media and widespread broadband services penetration.

The internet has come to play a central role in business, namely in terms of communication and the exchange of information. Information is made available in a growing array of formats, for example rich content transfer and video content. Businesses are keeping up with developments in internet technology to benefit from a growing array of services (such as online press) to remain competitive. The US, the EU and Asia-Pacific are the three leading regions in the world CDN market, combined holding over 80% of the overall market in terms of value.

The business and private sector alike are making increasing use of the internet to transfer rich content. Other factors fuelling CDN market growth include the expanding popularity of high-tech internet-enabled devices, high-value data demand and the fact that advertisers are turning away from traditional media to online advertising. The rising volume of online content fuelled by rising internet use within the business world and growing demand for high-quality video content on numerous devices are equally driving CDN market growth.

Global Industry Analysts forecasts the mobile content services market will reach almost $132 billion by 2015. Market growth will be fuelled by technological advances, better quality network infrastructure, premier content services and implementation of next-generation networks. The global mobile content services market is expanding due to soaring demand for applications like handset browsing, mobile games, mobile music, ringtones and wallpapers, which are factors boosting turnover for telephony service providers.

A growing trend toward social network activity is a driving force behind the mobile content services market, with popular sites including Facebook, Twitter and user-generated (USG) content. Logos and ringtones contribute largely to mobile content revenues, benefiting from mobile operator advertising. Established markets like the EU and North America are witnessing growing demand for patterns, where consumers have good levels of disposable income.

The global mobile video services market is expected to reach $30 billion by 2017, according to research from Global Industry Analysts. Market growth will continue to be fuelled by more elaborate mobile phones, which let consumers more easily view videos and use social networks on the go, using widespread high-speed mobile network penetration. Demand from Latin America and Asia-Pacific will be particularly strong, and overall market growth will be driven by improved video services such as YouTube, higher quality content and live TV.

The video content market is being driven by advances in mobile technology and widespread penetration of broadband. Industry players involved in content creation, media, telecom and technology are all overlapping to provide consumers with content.

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