Digital or mobile downloads is one among the many segments of e-commerce. In India, however, it contributes for only 2% of the total market size of e-commerce, it is growing steadily.
Components of digital download services
Digital downloading includes the process of copying data from the Internet to a computer or a mobile. Ringtones or wallpapers or pictures download, mobile recharge, software applications for mobile, paid music and other downloads, and mobile games download are the various components of digital downloading.
The market size of digital downloading services in 2009 was Rs. 435 crores. Out of it, about 34% (Rs. 148 crores) is contributed by the ringtone or wallpapers or picture downloads. Mobile recharge including payment for pre-paid connections or paying post-paid mobile bills also contributed 34% (Rs.148 crores). The market size of software and utility applications for mobiles is Rs. 78 crores accounting for 18%. The contribution of paid music, MP3, video downloads and other content was 7% (Rs.30 crores) and mobile games downloads was 6% (Rs.26 crores).
Digital downloading growth in India
The Internet and Mobile Association of India (IAMAI) report on online commerce in India for the year 2009 revealed that the average annual growth rate of the digital downloading services was 47%. In 2007, digital downloading total market size was Rs.238 crores. In 2008, it was increased to Rs.290 crores with the 22% growth rate. Again, there was a growth of 50% in 2009 and the market size was Rs.435 crores. It was further estimated to reach a market size of Rs.680 crores with a growth of 56% in 2010. The report also stated that there would be a growth of 62% in the digital downloading services by the end of 2011 reaching the market size of Rs.1,100 crores.