Commission Projects European Online Content Growth

BRUSSELS, January 25:
Revenues from online content purchases, including video, music and games, in
Europe will hit 8.3 billion euros by 2010, a 400-percent growth over 2005,
according to a study by the European Commission.

"The long-awaited
digital convergence is becoming an economic reality, creating great
opportunities for Europe's consumers, content providers and technology
industries," said Viviane Reding, the Commissioner for Information Society
and Media. "To capitalize may require casting a fresh eye at the technical
and legal issues where a modernized and internal market-oriented approach would
add value to European content.”

The report, entitled Interactive
Content and Convergence: Implications for the Information Society also found that although the market is growing
steadily, technological, economic and legal challenges need to be addressed to
accelerate the growth of this market in the region. The study found that Europe
trails the U.S.’s lead in developing interactive fixed broadband services, and
Japan’s and Korea's in mobile services.

Among the “36 roadblocks”
to developing the online content market is the issue of interoperability across
EU member states. Further, the report notes the slow uptake of 3G services in
the region. In addition, it cites the importance of effective digital rights
management systems to protect copyrighted content.

The study will be used as
part of the Commission's proposals on “Content Online in Europe's Single
Market” that may be presented in the second half of this year.