Digital Content Is Gaining More Importance Than Ever Before

The growth of electronic media has shifted people from the traditional print media. Now the time has come for the people to move towards digital media or digital content in the wake of mushrooming growth of Internet service providers. On top of these things, smartphones, or smart devices, bring the world to the user’s hands in no time. Therefore, it is quite obvious that the digital content is gaining more traction than ever before. This is primarily because digital content brings in everything, be it music or news or video or social networking.


As a result, a lot of digital media firms have embraced monthly, as well as yearly, subscriptions. The business method enables companies to offer premium services that provide more than the basic type. Subscriptions emerged as a fresh avenue of revenue model for not only digital content but also for apps. Internet firms are taking advantage of the available opportunity to list average revenue per user, or ARPU, due to recurring payments from the subscribers’ base.

Key Takeaways

Some of the takeaways from a recent survey have been reported by Business Insider. Accordingly, most companies provide ‘freemium models’ alongside subscriptions, typically operated simultaneously on advertising business. It later brought forward offering of a core audience exclusive value, which could be accessed beyond a paywall. The important aspect of this is to target the most reliable audiences and sell through an extended offering that they will not be able to resist. In other words, provide a bundle of content or features to the most reliable audiences.

The proportion of subscribers within the total user base differs to a large extent in digital media industries. Each and every category is different and faces different kinds of challenges, as well as opportunities, in dialing up the subscribers’ percentage and revenue. Similarly, apps and publishers provide mixed results with subscriptions. Spotify enjoys a maximum of 25% proportion of subscribers in apps user base. This is followed by WhatsApp with 21%, Pandora and Match Group with 5% each.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.
Read previous post:
goldman sachs
Excerpts from the Path To The Exit From Goldman Sachs Group Inc (GS) Economist Kris Dawsey

The suspense of whether the Fed will increase interest rates in June or not increases with the latest outcome of...