Digital media revenues decline

The Q1 2009 Global Digital Media Index (DMI) from the Strategy Analytics Digital Media Strategies Service shows that along with the worsened economic environment, digital media revenue growth continues to drop since Q1 2008.

The Digital Media Index grew only 0.9 per cent in Q1 2009 on a seasonally adjusted annual TTM basis, down from 3.4 per cent in Q4 2008 and from 6.6 per cent in Q1 2008. On a year-over-year basis, quarterly digital media revenues grew 3.6 per cent in Q1 2009, down from 29.2 per cent in Q1 2008. While the prolonged economic recession decelerates digital media growth significantly, digital media companies, based on consumer-paid models, are withstanding the economic downturn better than companies focused on advertising.

"Although many digital media companies will still choose the advertising revenue model given the relative ease of gaining user traffic, Strategy Analytics believes that the consumer-paid model is more resilient in the recession as it maximizes the value of content." commented Jia Wu, Analyst at Strategy Analytics Digital Media Practice and author of the DMI.

"As the US digital media market's major players suffer from revenue decline, the international market—in particular the European and Asian markets—is still weathering the economic downturn," said Martin Olausson, Director of Digital Media Strategies.

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