STAMFORD, CT, September 24, 2013 -- Driven by expanded broadband and wireless capabilities, increased demand for digital content and devices, and the emerging generation of digital natives, global consumer spending on digital media content & technology grew 11.9% in 2012 to $860.39 billion, according to a new report by PQ Media. Digital media spending - including unit purchases, subscription access, hardware, software and related services - accounted for 58.7% of worldwide expenditures on overall digital and traditional media content & technology in 2012, according to the PQ Media Global Consumer Spending on Digital Media Content & Technology Forecast 2013-17.
Consumer spending on digital media increased at a 14.5% CAGR in the 2007-12 period, while traditional media expenditures rose at a mere 1.4% compounded annually. Average spending per consumer worldwide nearly doubled in the 2007-12 period, reaching $161.83 per capita in 2012, according to PQ Media, a leading provider of economic research and strategic guidance to media industry executives. Concurrently, end-user spending on traditional media inched up only $3 over the five-year period.
The Global Consumer Spending on Digital Media Content & Technology Forecast 2013-17 is the third and final report in PQ Media's synergistic Global Digital Media & Technology Research Series. The third report tracks consumer spending on digital media content units and subscriptions, as well as consumer spending on digital media access, devices and software. It also delivers data on consumer traditional media spending for comparisons.
Consumer spending on digital media content & technology is on pace to grow 11.9% again in 2013, and is forecast to climb at a 10.8% CAGR over the next five years to $1.44 trillion in 2017. Digital media growth is being boosted by the rapid increase in penetration rates of smartphones and broadband internet access worldwide, as well as growing middle classes in the emerging BRIC markets, and heavy rich media consumption by GenX and Millennial consumers.
"The third installment in our groundbreaking Research Series confirms several key trends revealed in the first two reports. For example, the most tech-savvy markets are those with not only the world's heaviest users of digital media, but also those with the highest per-capita annual spending on digital media and technology," said Patrick Quinn, President & Publisher, PQ Media. "The third report ties together data from the first two publications in that consumer digital media spending is fostering growth in digital media consumption, which is driving the shift in advertising and marketing budgets to digital media channels."
Total spending on broadband and wireless data subscriptions surpassed $100 billion in 2012, while four other digital media segments topped $50 billion, including digital games, apps & microtransactions; multiplayer online games; computer tablets; and computer laptops & notebooks. Per-capita spending on digital media will jump to $259.48 in 2017, an increase of almost $100 over 2012.
Other key findings from the report include:
PQ Media's Global Consumer Spending on Digital Media Content & Technology Forecast 2013-17 takes the first econometric-based view of the surge in digital media spending worldwide, delivering unique insights and quantitative data driving the rapid shift of consumer spending from traditional to digital media by two overall sectors, five spending categories and 28 product & service segments. Research and analysis of key digital media trends and growth drivers provide a unique view into consumer purchasing behaviors and business expansion opportunities, with detailed data on the 15 leading global markets, including the US.
The new Global Digital Media & Technology Research Series is the only product line on the market to track, analyze and forecast the rapid transition of media operator revenues, consumer media usage and consumer media & technology spending from traditional to digital media in the 2007-17 period by country, platform, channel and cultural generation. To learn more about this groundbreaking Report Series or to request a live demonstration of any of the reports in the Series, contact PQ Media at the email addresses or phone numbers included in this news release.
PQ Media is a leading provider of economic research and strategic guidance to executives at media, entertainment and technology companies. Our research analysts study and forecast spending, distribution and consumption of media and technology products and services worldwide through more than 100 digital, alternative and traditional media channels.