people actually do pay for online content jim jansen senior fellow pew internet & american life...
TRANSCRIPT
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People Actually Do Pay for Online Content
Jim JansenSenior Fellow
Pew Internet & American Life Project
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Thanks!
Great to be here!
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Who is Jim Jansen?
• Senior Fellow at the Pew Research Center (Pew Internet & American Life Project) - http://www.pewinternet.org
• Associate professor at College of Information Sciences and Technology, The Pennsylvania State University, USA
• Active research and teaching efforts in the web area - http://ist.psu.edu/faculty_pages/jjansen/
• Forthcoming book, Understanding Sponsored Search (Cambridge) … theory of keyword advertising
• Recent Pew Internet reports focusing on ecommerce, income effect on internet usage, and online product research
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What is Pew Internet?• Part of the Pew Research Center • A nonpartisan “fact tank” based in
Washington, DC • Provide quality and objective data
to thought leaders and policy makers
• Pew Internet is one project of the Center
• All findings are based on nationally representative telephone surveys …
– U.S. adults age 18+ or U.S. teens ages 12-17
– Drawn from dual-frame (landline/cell phone) samples
– English or English and Spanish
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Do people actually pay for online content?
• Yes, they do …
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In fact, ….
• 65% of internet users have paid for online content
• … and they spend about $10 per month for this content
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Before we look at the details, …
• Let’s examine the context in which this occurring.
• There are three on-going revolutions in technology and access …
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8
#1 Internet and Broadband Revolution
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Has stabilized
Probably slow growth for years ahead
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70% 66%
Broadband access at home transformational, internet becomes a central hub for: • information• communication• entertainment
More importantly, content creators!
Changed the media landscape!
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11
#2 Wireless Connectivity Revolution
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Cell phone owners: 85% of adults
96% 90% 85%
58%
Cell phone ownership has outpaced or is on par with internet access for all age groups!
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Mobile internet connectors: 57% of adults
62% 59% 55%
Mobile internet connectivity with:• Cell phone – 39%• Laptop, etc. – 87%
Always on - access anytime
and anywhere!
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14
#3 Social Networking Revolution
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48% of American adults use social networking sites. The fastest growing is the 50+ age cohort!
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And, folks aren’t using just one SNS!
If trends continue, the majority of American adult internet users will have profiles on multiple social network sites.
Currently, a majority of social networking site users already do (52%).
Changing social roles, workforce,
culture, politics, news sources,
community, commerce, participation,
etc.
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The impact on information …Industrial Age
Info was:
Scarce
Expensive
Institutionally oriented
Designed for consumption
Information Age
Info is:
Abundant
Cheap
Personally oriented
Designed for participation
Dramatic effects on people’s relationship
to information, media, and electronic
content
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So, what does this mean for purchasing online content?
• This is what we are seeing … • 65% of internet users have purchase
some type of online content!, and are spending about $10 per month
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What do we mean by online content?
• Online content in this case refers to intangible digital products (i.e., software, articles, music, etc.). This is in contrast to …
• tangible products (e.g., hard-copy books, clothes, computers, etc.) that one can touch or
• tangible services (i.e., hotel reservations, airline ticket, rental cars, etc.) that one engages after purchase.
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Quick Methodological Note• Rather than just ask if a person had
purchased online content or not …• We asked participants whether or not
they had purchase 16 different types of digital content
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Breakdown by type of content• 33% of internet users have paid for digital music online • 33% have paid for software • 21% have paid for apps for their cell phones or tablet computers • 19% have paid for digital games • 18% have paid for digital newspaper, magazine, or journal articles or reports • 16% have paid for videos, movies, or TV shows • 15% have paid for ringtones • 12% have paid for digital photos • 11% have paid for members-only premium content from a website that has
other free material on it • 10% have paid for e-books • 7% have paid for podcasts • 5% have paid for virtual items to use in video or computer games • 5% have paid for “cheats or codes” to help them in video games • 5% have paid to access particular websites such as online dating sites or
services • 2% have paid for adult content
Low of 2%
High of 33%
Let’s take a quick look at these
percentages and content types
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Music and Software Lead the Way• 33% of internet users have paid for digital music online • 33% have paid for software • 21% have paid for apps for their cell phones or tablet computers • 19% have paid for digital games • 18% have paid for digital newspaper, magazine, or journal articles or reports • 16% have paid for videos, movies, or TV shows • 15% have paid for ringtones • 12% have paid for digital photos • 11% have paid for members-only premium content from a website that has other
free material on it • 10% have paid for e-books • 7% have paid for podcasts • 5% have paid for tools or materials to use in video or computer games • 5% have paid for “cheats or codes” to help them in video games • 5% have paid to access particular websites such as online dating sites or services • 2% have paid for adult content
Entertainment and commerce have
always been big drivers of internet usage.
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Apps, games, and information are next• 33% of internet users have paid for digital music online • 33% have paid for software • 21% have paid for apps for their cell phones or tablet computers • 19% have paid for digital games • 18% have paid for digital newspaper, magazine, or journal articles or reports • 16% have paid for videos, movies, or TV shows • 15% have paid for ringtones • 12% have paid for digital photos • 11% have paid for members-only premium content from a website that has other
free material on it • 10% have paid for e-books • 7% have paid for podcasts • 5% have paid for tools or materials to use in video or computer games • 5% have paid for “cheats or codes” to help them in video games • 5% have paid to access particular websites such as online dating sites or services • 2% have paid for adult content
The increasingly high penetration of smart
phones and tablets drivers of apps usages.
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Multimedia, Premium content, and books, follow
• 33% of internet users have paid for digital music online • 33% have paid for software • 21% have paid for apps for their cell phones or tablet computers • 19% have paid for digital games • 18% have paid for digital newspaper, magazine, or journal articles or reports • 16% have paid for videos, movies, or TV shows • 15% have paid for ringtones • 12% have paid for digital photos • 11% have paid for members-only premium content from a website that has other
free material on it • 10% have paid for e-books • 7% have paid for podcasts • 5% have paid for tools or materials to use in video or computer games • 5% have paid for “cheats or codes” to help them in video games • 5% have paid to access particular websites such as online dating sites or services • 2% have paid for adult content
Entertainment and leisure pursuits are
motivators across several types of online
content.
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Podcasts, stuff for games, and access come next
• 33% of internet users have paid for digital music online • 33% have paid for software • 21% have paid for apps for their cell phones or tablet computers • 19% have paid for digital games • 18% have paid for digital newspaper, magazine, or journal articles or reports • 16% have paid for videos, movies, or TV shows • 15% have paid for ringtones • 12% have paid for digital photos • 11% have paid for members-only premium content from a website that has other
free material on it • 10% have paid for e-books • 7% have paid for podcasts • 5% have paid for tools or materials to use in video or computer games • 5% have paid for “cheats or codes” to help them in video games • 5% have paid to access particular websites such as online dating sites or services • 2% have paid for adult content
Again, entertainment and leisure pursuits.
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And, finally, adult content • 33% of internet users have paid for digital music online • 33% have paid for software • 21% have paid for apps for their cell phones or tablet computers • 19% have paid for digital games • 18% have paid for digital newspaper, magazine, or journal articles or reports • 16% have paid for videos, movies, or TV shows • 15% have paid for ringtones • 12% have paid for digital photos • 11% have paid for members-only premium content from a website that has other
free material on it • 10% have paid for e-books • 7% have paid for podcasts • 5% have paid for tools or materials to use in video or computer games • 5% have paid for “cheats or codes” to help them in video games • 5% have paid to access particular websites such as online dating sites or services • 2% have paid for adult content
At least some people tell the truth!
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Misc.• 33% of internet users have paid for digital music online • 33% have paid for software • 21% have paid for apps for their cell phones or tablet computers • 19% have paid for digital games • 18% have paid for digital newspaper, magazine, or journal articles or reports • 16% have paid for videos, movies, or TV shows • 15% have paid for ringtones • 12% have paid for digital photos • 11% have paid for members-only premium content from a website that has other
free material on it • 10% have paid for e-books • 7% have paid for podcasts • 5% have paid for tools or materials to use in video or computer games • 5% have paid for “cheats or codes” to help them in video games • 5% have paid to access particular websites such as online dating sites or services • 2% have paid for adult content • 6% have paid for some other type of content
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Purchasing online content
That’s where the 65% of internet users having purchased online content came from.
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Number of online content types purchased by internet users
75% have purchased multiple types of online content
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Much do they spend?
• Average monthly spend was $47
• High end users skewed the average
• Most purchasers spend approximately $10 per month
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Number of types of payment methods
• 23% of internet users pay for subscription services
• 16% pay for downloading an individual file
• 8% pay for accessing streaming content
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Demographic factorsSimilar percentages of men and women internet users pay for online content (except software, which significantly more men purchase).
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Demographic factorsThere does not appear to be a racial divide associated with accessing online content.
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Demographic factorsInternet users between the ages of 30-49 are the most likely to have purchased most kinds of content.
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Demographic factorsThose with college degrees or some college generally are more likely to purchase online content.
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Demographic factorsThere is a correlation between income levels and paying for online content, with those in higher-income bracket households more likely to pay for online content.
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Take Aways
• Technology and access is changing (has changed) the value, dissemination, and relationship attributes of information
• Percentage of internet consumers similar for products, services, and digital content (all about 65%)
• Also about the same as the households with broadband access (66%)
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Related Thoughts
• Didn’t look at B2B purchases (e.g., search engines purchasing AP newsfeeds and Twitter feeds, etc.)
• Power law distribution (i.e., Netflix for movies, iTunes for music, etc.)
• Line between bits and atoms blurry (i.e., can get content both digitally and hard copy)
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Related ThoughtsAlso, attitude shifts of purchasing online … perhaps based on context, use, and age
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Sign that I am officially getting old. I had the option today to pay for or pirate software – I decided to pay.
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Follow-on Discussion
• Happy to chat (either today or contact me) • Email [email protected]• LinkedIn http://www.linkedin.com/in/jjansen• Twitter jimjansen• Complete research in:
Jansen, B.J. (2010) 65% of internet users have paid for online content. Pew Internet Report. http://www.pewinternet.org/Reports/2010/Paying-for-Content.aspx
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• Use of the internet in higher-income households http://www.pewinternet.org/Reports/2010/Better-off-households.aspx
• Online Product Research http://www.pewinternet.org/Reports/2010/Online-Product-Research.aspx
• Generations and their gadgets http://www.pewinternet.org/Reports/2011/Generations-and-gadgets.aspx
• Wikipedia, past and present http://www.pewinternet.org/Reports/2011/Wikipedia.aspx
• Generations 2010 http://www.pewinternet.org/Reports/2010/Generations-2010.aspx
Related Reports Available at Pew Internet
Pew Research uses a freeimu
m model. All
reports, surveys, and data are available
and free. Material from 2000 to the present!
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Thanks!(welcome questions!)
People Actually Do Pay for Online Content
Jim JansenSenior Fellow
Pew Internet & American Life Project