The Internet's reputation as a haven for freeloaders is beginning to lose some meaning as research released today suggested the majority of Western European online users are willing to pay for digital content.
A survey conducted by Jupiter Research said Internet users' reluctance to pay for online content, ranging from music downloads to news articles, dropped from 47 per cent in 2001 to 41 per cent last year, suggesting media companies may finally see their digital subscription ventures begin to pay off.
With online advertising in the doldrums the past two years, media outfits from newspaper publishers to Internet service providers (ISPs) have rolled out a variety of subscription-based offerings aimed at increasing revenues.
Jupiter projects Western Europeans will spend €2.5 billion by 2007 on all forms of digital content, up from €337 million last year.
Any increase in consumers' willingness to pay is positive news for struggling Internet companies as it suggests consumers are gradually becoming accustomed to the notion that many forms of online content will come with a price tag some day.
"It's very encouraging that more people are willing to pay for content, particularly in the longer term," said Mr Olivier Beauville, a Jupiter analyst.
According to Jupiter, 19 per cent said they would pay for song downloads over the Internet, up from 16 per cent a year ago.
Major recording labels and retailers have had trouble getting consumers to switch from free file-swapping networks such as Kazaa or LimeWire to their own digital subscription services.
Another area of growing consumer demand was video downloads. Thirteen per cent of consumers said they were willing to pay for such material compared to three per cent a year ago.
Mr Beauville cited online gaming as a promising growth area too, forecasting that many avid gamers would spend on average €100 to €150 annually to download games or pay for the ability to play other gamers head-to-head online.
Mr Beauville said consumers are more willing to pay for news online, but cautioned: "Subscriptions will not replace online advertising as the largest revenue stream any time soon."
The survey was generated from a poll of 10,000 Internet users in Britain , Germany, France, Italy, Spain and Sweden.