Roberto Monge

European digital content industry will triple by 2026

Posted on by Andrea Putnam-Moorcroft

The European digital content industry reached last year almost €45.3B in terms of revenues and will reach €114,6B in five years (x3). These data result from an analysis carried out by Telecoming, a company specializing in monetization technology (Adtech and Direct Carrier Billing) since 2008. The firm has studied the evolution of digital content consumption in Europe.

Last year, 498M Europeans accessed digital content and spent on average €15 per month. 52% of total revenue came from video, games (34%) and music (14%). The study concludes that the consumption trend will go up. In 2026 a total of 606M users will consume digital content and increase their monthly spending to €30.5 per month. The video games sector, perhaps driven by the metaverse, will be the sector that will experience the highest growth. In five years, it will account for 47% of the total income of the digital content industry, above video (42%) and music services (12%).

Roberto Monge, Chief Operations Officer at Telecoming, stated, “the European digital content industry is very dynamic, and the average spending will continue growing. The subscription model will predominate because it meets users’ expectations. The UK and Germany are the leading digital entertainment markets, with great growth potential.”

 

The UK, the leading video consumer

In 2021, the UK was the country that consumed the most digital video services (44% of the population). In 2026 it will also be the top country, with 59% (41,3M users) of the active population appreciating this type of content. The UK has the most profitable digital video services market: €4,2B in 2021 and €5,7B in 2026 (62% will come through subscriptions). At some distance, Germany will follow with a volume of €5B in the coming five years. It is estimated that the entire European market will reach €30.6B in that period.

Video games will register the highest growth

According to Telecoming’s research, 62% of Europeans will enjoy mobile games in 2026 (+9 points vs 2021). Germany led the ranking with 49.8M users last year, followed by the UK (44.8M). Both countries will add followers in the coming years (+14 M in Germany and +11.4 in the UK). European mobile gamers played almost 2B games in 2021.

The evolution of the mobile gaming market will be an unprecedented growth.  €15,6B generated in 2021 will become €68,6B in 2026. This growth will go hand in hand with the consolidation of the metaverse, the next big thing where the leading technology industry players are already investing.

9 out of 10 Europeans pay for digital music services. However, the UK is the largest market (€16B in 2026). 18% of Britons accessed a digital music service in 2021. This percentage will increase to 22% in 2026. 97% of these will also subscribe to a digital music service and pay €10.8 per subscription (average). This is also a general trend in Europe. In 2026, 98% of users will subscribe to at least one music service.

 

Telecoming is an international company specialized in digital services monetization technologies. It deploys solutions aimed at improving mobile payment processes and advertising technology. A scalable, flexible, and secure platform seamlessly integrates revenue generation tools for companies operating in the digital environment. Leader on the economics of digital content since 2008, Telecoming currently operates in 21 countries.

Direct Carrier Billing Index reveals the most favourable countries for DCB growth in the MEA region

Posted on by Andrea Putnam-Moorcroft

The first DCB Index developed by Evina and Telecoming is released today

  • Bahrain, Egypt, and Qatar are the most attractive markets for DCB, leading the index
  • The innovative tool measures the maturity of this mobile payment method in 18 countries
  • The development of the DCB Index is one of the commitments established in the alliance signed earlier this year by both companies

Analysts from Evina, experts in DCB protection, and Telecoming, experts in DCB implementation, have developed the first Direct Carrier Billing (DCB) Index. This rating aims to provide market players with a comprehensive overview of the current state of the DCB business and its overall potential.

Bahrain, Egypt, and Qatar lead the list according to the results of the first DCB Index created to measure the development of this market in MEA. The innovative tool[1] uses 4 KPIs focused on Fraud Protection, Mobile Payments Innovation, DCB Penetration levels, and DCB Growth Potential.

As a result, the DCB Index establishes a ranking based on the score achieved by each country. It is presented on a scale from 1 to 5, with 1 as the lowest indicator and 5 being the most advanced pointer.

Download the full DCB Index here: https://www.evina.com/resources/dcb-index-evina-telecoming/

According to the analysis, Bahrain (3,7) stands out for its extensive DCB protection against fraud. The country shows full support for DCB, seeing that all local mobile operators have implemented this payment technology, yet innovation remains a weak point to develop.

Local mobile operators and merchants are working together to promote DCB as an effective payment method in Egypt (3,3). It’s a true breeding ground for the development of DCB, and efforts must continue to strengthen DCB protection to realize its full potential. Forward-thinking MNOs have enabled in-app purchases in Qatar (3,2). Its overall innovative approach to mobile payments, such as paying employees via mobile money, demonstrates the country’s predisposition to implement new uses of DCB.

According to the index, mobile payment partnerships centred around DCB are growing in Kenya, while Morocco shows ample room for growth in DCB Innovation.

South Africa has a high DCB uptake but has had to deal with fraudulent mobile payment attempts. Hence, increased protection is vital for the sustainable development of DCB as an easy and reliable payment method in the region.

According to Roberto Monge, COO of Telecoming, “DCB has been gaining presence in the region’s digital economy. This innovative indicator shows that many countries are on the right track. Technology is already in place, but there are still some challenges to face. All the payments tech industry players need to work together to develop a new, reliable, secure and stable mobile economy that benefits the whole market “, says Monge.

David Lotfi, Founder & CEO of Evina, states, “the DCB Index indicates that fraud on DCB remains as a top barrier to countries maximizing the potential of direct carrier billing.” Lotfi adds, “these findings strongly suggest that anti-fraud measures need to be more extensively and consistently implemented so that DCB becomes not only a widely used effortless payment method but a source of greater revenue for mobile players.”

 

[1] The figures provided are algorithmic-based estimations calculated from Evina sensors and Telecoming intelligence data. The DCB Index is intended for information purposes only.