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Digital content revenue to reach US$432 billion in 2026

The total market value of digital content will more than double over the next five years.

According to a new study from Juniper Research, the market value of digital content will rise from US$211 billion in 2021 to US$432 billion in 2026, representing a growth of 105% over the next five years. The estimate accounts for pay-per-download revenue, in-app content spend, subscription revenue and ad spend over digital content.

The report notes that digital games will account for 45% of the global market value, with game subscription services like Xbox Game Pass and PlayStation Now increasing in popularity. Netflix could also enter the space, with mounting speculation that the video streaming leader is looking to start an in-house gaming division.

In total, it notes that there will be over 3.3 billion gamers by 2026 – up from 2.7 billion in 2021.

Report co-author Saidat Giwa-Osagie said:”Over half of digital content spend will come from smartphones. However, as subscriptions become increasingly competitive, niche areas, such as augmented and virtual reality, will need to be considered when onboarding content partners.”

The report also identified two key device channels that are set to provide new revenue opportunities during the period: immersive reality headsets and smart speakers. It noted that North America and Europe will account for over 50% of the total of US$8.1 billion in revenue for the sector.