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Over the next five years, global internet and media revenues will grow by over $400 billion, outpacing GDP growth. And according to Activate analysis, access, not content, will be the revenue growth driver over the next five years, meaning people will be spending more money on data and internet access.

Subscription will continue to be the dominant revenue model, accounting for over half of consumer internet and media growth while consumer pay models outside of subscription and freemium are essentially disappearing. Forecasts indicate how digital consumers are increasingly willing to spend more on digital applications.

The top subscription services in app stores are mainly video and music streaming – such as Spotify, HBOnow, Netflix and Pandora. However, when filtering by demographics, the major group of young adults users (18-35 years old) invested heavily on Tinder (70% of users) and Sing Karaoke (41% of users) as well.

Activate Outlook 2017

Digital access and television providers capture the highest average revenue per user in the USA. Viewed through a global lens, hardware/commerce-oriented businesses are the ARPU (average revenue per user) leader. Although the trend of consuming via subscription is also seen in the general population, younger people aging in will further increase tech and media subscription adoption, which still is a gap in the market that deserves attention.

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