(Length: 14 pages)

February 6, 2006

Broadband Creates A Content Business Model

Profit Models Will Vary By Genre, But Advertising Will Dominate

by Brian Haven

with Chris Charron, Remy Fiorentino, Tenley McHarg, Sally M. Cohen

Executive Summary (This is a document excerpt)

The content business model has arrived. Fueled by broadband, the number of consumers paying for online content increased 38% in 2005, and average individual spending for online content increased to $88 per year, a 14% gain over 2004. However, online advertising still dominates the business model, with spending on search engine marketing and display advertising increasing to over $13 billion in 2005. Media companies must assess audience demands, content sources, and the necessary technology to ascertain the best method for making money from online content.

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