With the current recession necessitating the need for the media industry to be more innovative than ever the pay for content debate continues.
As reported in MediaPost, indications are that consumers may be willing to pay for access to the content they enjoy and, in fact, members of Gen Y are more likely to say they will spend money than Gen Xers and Baby Boomers.
According to research conducted by U.S. based company Magid Associates, 80 per cent of Gen Yers state they would pay for music, whereas it was 52 per cent for Baby Boomers. 69 per cent of Gen Yers would pay for professionally produced television programming as opposed to 51 per cent of Baby Boomers.
When it comes to news and information the gap narrows with 43 per cent of Gen Yers saying they would pay versus 36 per cent of Baby Boomers.
Whilst Baby Boomers control most of the wealth their attitudes towards paying for content reveal a less than ideal product target. Across every category tested, Baby Boomers were less likely than Gen Yers to say they would pay for content.
If charging for content is the goal then it is imperative that the Gen Yers are involved in the decision making process. The challenge is not whether they will pay but what they will pay for.
According to MediaPost there are two ways to approach the challenge of pay for content. One would be to put walls around your content and hope it is desired enough to warrant payment. Another approach is to evolve a current or future product in to a brand that Gen Yers find indespensible.
Gen Yers may be cost conscious but they will also pay a premium if they see a concrete benefit.
The influence of Gen Y is only growing. By the end of 2009 they will comprise 47 per cent of the 18-49 advertising demographic.
As long as marketers factor Gen Y into the plan even more money making opportunities will be revealed, the research concluded.
OPINION/FEEDBACK TO THE EDITOR.