Report: Pay-on-demand will provide revenue for Net content

A survey from Datamonitor claims that pay-on-demand Internet content will outstrip subscription models by the year 2004.

The report -- Revenues from Consumer Online Content Publishing -- predicts pay-per-play gaming will be an important driver for creating revenue on the Internet and, although few sites currently offer it, the survey predicts it is coming soon. Currently most content sites have adopted the subscription model with pay-on-demand limited to adult and news sites.

Datamonitor predicts consumers will drive the uptake of pay-on-demand models, mainly because of the freedom it offers. "Pay-on-demand appeals to consumers because it does not tie them in to a particular brand or site. They are able to go from site to site and pick and choose whatever content they require," says Datamonitor analyst Shilpi Oodit.

In 1998 an average online US household spent $63 (£38) on paid content while UK surfers were a little more thrifty with an average spend of $38 (£23). Datamonitor predicts we will be spending a little more by 2003, up to $66 (£40).