Boston, MA
June 2007

Online and Mobile Digital Content Markets 


Mercator Advisory Group is pleased to announce the release of its latest report, Online and Mobile Digital Content Markets.

For payments professionals at financial institutions, payment processors and others needing to understand the digital content supply chain, this new report frames the challenges and opportunities posed by digital content across multiple distribution channels and as advertising or paid content.

In particular, the report examines the types of digital content delivered over cable, fixed Internet and wireless networks including music, audio, video, TV, and games.  The market for each varies strongly with the distribution channel.  The combination of channel and content type determines the go-to-market opportunity as well as the technical constraints and data formatting required to deliver a positive consumer experience.

The report discusses the digital content market activities of such new and significant participants in this evolving ecosystem such as Apple, Joost, MuchMusic, Google, Microsoft,, Netflix, Blizzard Entertainment and more.

Highlights of the report include:

  • The global digital content market for advertising and paid content will be $138 Billion by 2011.
  • Demonstrating the shift in power toward distributors, Apple’s iTunes will generate $1.8 Billion in sales this year and this is the narrow margin portion of it’s “iPlatform” business of iTunes, iPods and, now, the iPhone.
  • The mobile distribution channel is growing in value because of exploding subscriber numbers and tight mobile operator control over content delivery.
  • Given the right demographic and the right content, digital content becomes a compelling element in rewards and incentives programs, as costs are comparatively low.
  • Social networking platforms – both online and mobile – will give card marketers and digital content owners and distributors new tools to reach prospective customers and drive sales of both digital and physical media.

“Digital content is complex.  To participate in these markets, payments professionals must be willing to target new audiences, work with new partners and wrestle with a new array of details, comments George Peabody, Director of Mercator Advisory Group’s Emerging Technologies Advisory Service.    “While these markets are growing fast – just look at the volume growth of iTunes – card and rewards programs involving digital content will demand the niche focus of prepaid card programs to be successful.”

                             One of the 10 Exhibits included in this report.


This report is 33 pages long and contains 10 exhibits, and 3 tables.

Members of Mercator Advisory Group have access to this report as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.  Please visit us online at

For more information call Mercator Advisory Group’s main line: 781-419-1700 or send email to