The digital era has resulted in a significant shift in consumer behaviour and in particular, how information is received and shared. This is an age in which almost every industry is radically changed as a result of technology and the news industry is no exception to this rule. This report gives you an overview of the most important facts on the vertical of “technology, media and telecommunications” or short TMT.
As news providers shift offerings to meet consumer demands in an increasingly digital world, the largest challenge being faced is to create a profitable business model. Two prominent revenue models within digital news can be observed:
1. Providing Free Content
With the main revenue generation from:
- Native Advertising
- Display Advertising
Native advertising is gaining traction, with a predicted annual growth rate of 14.7% (p.a.).
By 2018, the predicted native advertising revenue in the United States is $21 bn.
With revenue generated from
- Payment Per Article
Overall, global paywall revenue is predicted to experience an average growth rate of: 27.5% (p.a) between 2015 and 2019. By 2019, global paywall revenue is predicted to reach: $6.3 bn. Important trends in the outlook of digital news include the following:
With users of mobile devices four times more likely to pay for content
- Social Media
With social media driving 31.2% of all traffic to news sites in 2014, and increasing year-by-year
- Quick Consumption
With 79% of mobile users using their devices for quick news updates only
With artificial intelligence now capable of both reading and writing news content
With 90% of news content predicted to be behind paywalls by 2019
Especially the trends in digital news regarding the mobile phone are interesting:
- Within the first 15 minutes of being awake, eight of ten smartphone users check their devices.
- Smartphone users currently spend 2.2 hours per day consuming media through their devices and this is increasing year-by-year.
- Mobile and tablets represent 37% of total media consumption, which is also increasing year-by-year.
- Within this growing sector, around half of the total mobile media consumption is reached through apps
The legal framework of online news is complex, and copyright issues have caused tension between content providers and curators. For more information about this topic you can download the free report on Digital News.