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iTunes Downloads Withstand Downturn Better Than Online Advertising
Global Digital Media Grows 20 Percent to $74 billion in 2008
Boston, MA - 20 March 2009 - According to Strategy Analytics Digital Media Strategies (DMS) research, the top 27 digital media companies in the world increased earnings by more than 20 percent, to $74 billion in 2008 up from $61.5 billion in 2007. Among the top five digital media companies in the world, Apple's `Other Music Related Products and Services' segment, which includes iTunes, was best- in-class - growing 32.7% in 2008, while Yahoo! grew the least with only 3.4% growth in 2008. This research also reveals that most of the companies focusing on consumer paid-for media, such as music and video downloads, are currently withstanding the economic downturn better than most of the companies focusing on online advertising.
"While growth in the digital media sector has been slowing as a result of the global economic downturn, the industry still grew a healthy 20.5% in 2008 and Strategy Analytics projects a further 7% - 9% growth in 2009," said Jia Wu, Analyst at Strategy Analytics' Digital Consumer Practice.
"The fact that, in 2008, most of the companies focusing on consumer paid-for media in the Strategy Analytics Digital Media Index performed much better than most of the companies focusing on online advertising, could be an early indicator that we are approaching a watershed moment in the nascent digital media market, and that more focus will be put on consumer paid-for online media in the difficult years ahead," commented Martin Olausson, Director of Digital Media Research at Strategy Analytics.
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