Last Friday, the Dutch Ministry of Economic Affairs, Agriculture and Innovation presented a research report ‘Digitale drempels’ (‘Digital Thresholds’) from SEO about the factors that may hinder the supply of and demand for digitally distributed music, audiovisual content, games and books in the Netherlands. The study shows that the four sectors differ substantially in terms of digital distribution.
1. digital music as a product does not offer sufficient advantages for consumers, so they may prefer illegal (free) downloads or physical products
2. The study finds that the supply of digital audiovisual content is fragmented and incomplete due to the problem of clearing rights and the industry’s ‘windowing’ strategy
3. The market for digital games does not meet serious obstacles, but online distribution offers almost no price advantage for consumers
4. The main issue in the market for e-books is the lack of titles. New books are increasingly published as e-books, although often with delay compared to their paper equivalents. Also, the availability of older titles that are not being marketed anymore is poor