..::K DIGITAL::..

It is obvious that there is a digital revolution happening in the content industries- not only downloadable music, but also online games, video and e-books are transforming the way consumers access content. We are experiencing a complete transformation of the way content is generated, distributed, and tailored to a set of new consumer trends.

This transformation calls for a digitising process that makes the support-based content available online. Moreover, the content has to be enriched with meta-data to make identification and organization possible: and it has to be made available in various formats to digital content outlets for digital distribution.

It is in this transformation process that K Digital fulfils an important role for content providers and retailers.

Advantages of digital content delivery are:

Instant availability

Wide choice of back catalogue material available from one central point

Relatively low cost to the consumer

The ability to enrich the content with metadata, and multimedia.

After years of turmoil, finally the content industry, with the music industry as its leading component, seems to be finding its way into the digital era as consumers more and more make use of digital music stores. Although growth in the relatively new digital music sector is strong, trying to predict the pace of this growth has proved extremely difficult as the buzz about download offerings, along with trial promotions from online music retailers, helps to build the services' brands and entice first-time users.

Jupiter expect the European digital music market is to quadruple from the €10.6 million (US$13.17 million) earned at the end of 2003 to €46.3 million (US$57.5 million) by year-end 2004. The surge will continue through 2009 when digital music revenues reach €836 million (US$1.03 billion), representing 8 percent of the total music market, digital distribution being a significant alternate distribution channel. Moreover, this estimate covers downloads and online music subscriptions, but not mobile phone ring tones.

Forrester Research published a much more bullish forecast, quoting the Western European digital music market worth 3.5 billion euros - or 30 percent of the overall European market -by 2009.