More Than 10 Million Americans Have Purchased Items Online for Less Than Two Dollars in the Past Year
150 Percent Increase In Market Size: Consumers Purchasing From Multiple Web Sites and Buying More Than Digital Music Reports Ipsos-Insight/Peppercoin Survey
WALTHAM, Mass.--(BUSINESS WIRE)--July 14, 2004-- More than 10 million Americans have purchased digital content for less than $2 in the past year according to a comprehensive, quantitative survey on the micropayments market. This represents a nearly 150 percent increase over the four million consumers who indicated they had purchased low-priced content online in a similarly conducted October 2003 research study.
While digital music was still the item most likely to be purchased, other items such as articles, games and ringtones were also frequently cited purchases in the past 12 months.
"The data shows that more consumers are purchasing low-priced content online, and the market may be growing beyond the initial groundbreaking content areas, such as digital music," said Matt Kleinschmit, director, Ipsos-Insight.
The study, conducted by global survey-based market research group Ipsos-Insight, and Peppercoin, a payments company that enables profitable new business models for low-priced digital content and physical goods, was a scientific telephone survey to a random sample of 1,100 Americans ages 12 and older and has a margin of error of +/- 3 percent.
A Growing Number of Places to Buy Low Priced Content Online
In October 2003, only 25 percent of consumers who had purchased low priced content had made a transaction from more than one Web site, such as Apple iTunes. In the eight months since the initial survey, however, that proportion has grown to 36 percent, suggesting both that more Web sites are offering low-priced content, as well as consumers are becoming more comfortable in experimenting with low-priced online content purchases.
"The two keys to driving the growth of this market are providing consumers with content they want to purchase, and making it as easy as possible for them to purchase the content they want," said Perry Solomon, vice president of strategy for Peppercoin. "The survey shows merchants are increasingly providing consumers with content they want, and with the release of our new Peppercoin 2.0 solution, which makes low-priced transaction processing invisible to the consumer, Peppercoin has solved the second half of the equation. We will continue to work with merchants to enable them to bring new content to market and give consumers more choice."
About Ipsos-Insight
Ipsos-Insight is a member of the Ipsos Group, a leading global survey-based market research company. As the company's flagship marketing research division in the U.S., Ipsos-Insight provides custom and tracking research to domestic clients as well as U.S.-based multinationals. Ipsos-Insight specializes in research for the Consumer Products, Technology & Communications, Financial Services, and Health industries.
About Peppercoin, Inc.
Peppercoin enables profitable new business models for low-priced digital content and physical goods. Peppercoin's small payment products help merchants, banks and other payments companies build market adoption quickly through a flexible, consumer-friendly approach. Peppercoin integrates easily with existing business models and systems to accelerate revenues and increase profits while dramatically lowering transaction and customer service costs. For more information visit www.peppercoin.com.
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Contacts
Schwartz Communications
Mark McClennan or Scott Love, 781-684-0770
Peppercoin@schwartz-pr.com
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