USD2.1 trillion on digital information this year
BUSINESS| July 28, 2012, 7:50 p.m.
Consumers will spend USD2.1 trillion worldwide on digital information and entertainment products and services in 2012, according to Gartner.
This amounts to a USD114 billion global increase compared with 2011. Gartner says spending will continue to grow at a faster rate than in the past, at around USD130 billion a year, to reach USD2.7 trillion by the end of 2016.
The USD2.1 trillion consists of what the consumers will spend on mobile phones, computing and entertainment, media and other smart devices, the services that are required to make these devices connected to the appropriate network, and software and media content that are consumed via these devices.
"The three largest segments of the consumer technology market are, and will continue to be, mobile services, mobile phones and entertainment services," said Amanda Sabia, principal research analyst at Gartner. "There are two product classes, which in terms of absolute dollars are significantly smaller, but offer tremendous growth by 2016. These are mobile apps stores and e-text content. We fully expect consumers to more than triple their spending in these latter two categories by 2016."
Mobile services are expected to generate 37% of total worldwide consumer technology spending in 2012. Entertainment services, cable, satellite, IPTV and online gaming, will account for 10% of total consumer spending on technology products and services in 2012.
Gartner predicts that consumer spending on mobile apps stores and content will rise from USD18 billion in 2012 to USD61 billion by 2016, and that spending on e-text content (e-books, online news, magazines and information services) will rise from USD5 billion in 2012 to USD16 billion by 2016.
"Our research consistently shows that consumers are willing to pay for content they deem "worth it,"Sabia said. "However, our research has also found that consumers are willing to tolerate an ad-supported business model in exchange for free functions and content such as personal cloud storage, social networking, information searching, email, IM, person-to-person (P2P) voice (Skype and mobile voice over IP [VoIP]), streaming/downloading video and musical content when accessing the Internet."
MORE BUSINESS NEWS
Ekocenters to empower Rwanda’s women entrepreneursEricsson and The Coca-Cola Company have launched a pilot to bring mobile connectivity to EKOCENTER in Rwanda, with a view to expanding the partnership to other countries. Read More
Africa’s youngest entrepreneurs stand to win $75,000The Anzisha Prize is expanding, after initial success, to provide increased support to entrepreneurial youth and partner organisations to drive pan-African economic growth to 2020. Read More
New age e-commerce consumers challenge traditional business modelsAfrican consumers are increasingly searching online platforms with commercial intent, says DHL. Read More
VMware appoints Bask Iyer as chief information officerVMware has announced the appointment of Bask Iyer to the role of senior vice president and chief information officer (CIO) of VMware. Read More
SpeedCast acquires GeolinkSpeedCast International Limited, a leading global satellite communications service provider, has announced the acquisition of Geolink Satellite Services, a leading provider of satellite communications solutions in the African region. Read More
Out of the Dark: Survival guide for businesses during load-sheddingAs Africa’s premier integrator of business continuity services, ContinuitySA’s team spends a lot of time identifying risks and how to mitigate them. One risk that has become very real for South African businesses is load-shedding. Read More
Insurance body: ICT essentialThe newly established Insurance Institute of Botswana (IIB) says in this day and age it was virtually impossible for organisations, insurance companies included, to operate without incorporating ICT in every facet of their operations. Read More
VMware appoints Scott Dodds as new Vice President, Channel and Alliances in EMEAVMware, the global leader in virtualisation and cloud infrastructure, has announced the appointment of Scott Dodds as Vice President of Channel and Alliances in Europe, Middle East and Africa (EMEA). Read More
IHS Towers awarded Telecom Finance Deal of the YearIHS Towers, Africa’s leading independent mobile telecommunications infrastructure provider, has won TelecomFinance’s 2015 award for Deal of the Year. Read More
Moving from doer to influencer – the shifting role of the CIOThe role of the chief information officer (CIO) has evolved over the past few years, with CIOs no longer just the decision makers for IT systems. Read More
FEATURED STORY2bn priced out of internet access
A new report from the Alliance for Affordable Internet shows that the price of broadband remains prohibitive for billions in developing and emerging countries, with women and rural dwellers hardest hit.
BEST READ NEWS
IN DEPTHKenya’s digital TV battle hots up
Kenya’s journey to Digital TV broadcasting took a new turn this week, when the Communication Authority of Kenya (CAK) accused three local media firms of intent to disrupt the process.
COMPANY NEWSVMware unveils vCloud for NFV with Integrated OpenStack to accelerate service innovation
VMware, the global leader in virtualisation and cloud infrastructure, today debuted VMware vCloud for NFV, an integrated Network Functions Virtualization (NFV) platform that will combine VMware’s production-proven ...