Access is the Biggest Digital Product

Of the $2 trillion consumers spent globally in 2010 on digital information and entertainment products and services, the largest spending segment (62 percent) was for communications subscription-based access and usage services, say analysts at Gartner.

The $1.2 trillion included mobile and wired voice services; mobile data services, such as testing and broadband; fixed broadband services; video services, such as subscriptions to pay TV; and online gaming.

The second-largest spending segment (28 percent) was for devices. The $600 billion is made up of consumer electronic devices, such as mobile/handheld devices, PCs and related devices, and stationary entertainment equipment, such as television sets and game consoles.

The smallest spending segment (10 percent) was for content and software for a total of $200 billion.

That is one perspective on digital goods. As significant as content and software sales might be, 90 percent of the money spent by consumers each year is on the appliances to get and use the content, and access to network services to deliver content.

Some people worry about (low margin) "dumb pipe" business models. The worry is genuine, but collectively, access services and device sales represent most of the economic activity.

Gartner Says Consumers On Track to Spend $2.1 Trillion Globally on Digital Information and Entertainment Products and Services in 2011