KPMG Digital Content Survey

KPMG did a recent survey that revealed that venture capitalists are going to invest heavily in digital content creation over the next two years. KPMG polled 300 venture capitalists, investment bankers and corporate execs reporting that 52 percent of the repsonses believe venture investment in online and mobile content creation will increase over the next decade. Around 25 percent believe investments will increase by more than 20 percent.  There was a dead tie when asked about investment in user-generated content or professional content providers.

 

The sectors where they expect the greatest investments are; 31 percent voting for mobile applications, 26 percent for technology enablers and 20 percent voted for social media services.  Around 31 percent expect social networks to dominate mobile entertainment market revenue by 2009.

Music and gaming downloads got about 20 percent of the votes with video getting 14 p[ercent.  User-generated applications received 10 percent. The survey also revealed that 44 percent percent chose mobile social networking, 44 percent social media, 22 percent for content owners, 20 percent brand advertisers and 14 percent going to wireless operators.  As far as mobile video - 90 percent of investment firms think that mass adoption of mobile video will take place in the next five years.  Around 60 percent forecasting it will happen in the next three years.  I think the adoption will actually be faster than what they are predicting as the drop in mobile carrier prices (bundled offerings) and the reducion in cost of video cell phone will drive the rapid adoption.