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Content Spending Reaches $2B, Q4 a Record $534MM

Downloadable music and video purchases helped propel U.S. consumer spending on content to $2 billion in 2005, a 15 percent increase from 2004, writes MediaPost, citing new research by the Online Publishers Association. In 4Q05, spending reached $534 million - a record, and 13 percent more than the $472 million in 3Q04. Entertainment and lifestyle spending soared from $413 in 2004 to $574 million, becoming the lead category for the first time.

The former leader, online personals and dating, accounted for $503 million in spending, compared with the previous year's $469.5 million. Investment and business content spend totaled $320 million, up from $313 million; research was $152 million, up from $115 million; games accounted for $108 million, up from $89 million. Spending on general news sites decreased to $78 million, down 10 percent from $88 million in 2004; sports content spending was $51 million, down from $53 million.

Subscriptions constituted 78 percent of revenue in 2005; single purchases accounted for 22 percent, up from 15 percent in 2004.

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