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The index tracks digital revenues on a quarterly basis among Apple iTunes, Yahoo!, Microsoft Online and other leading digital companies.
For the second quarter of this year, growth was .8%, down from 3.3% growth in the first quarter and 3.4% growth during second quarter 2007.
"It seems that not even an emerging sector such as digital media is immune to the global economic downturn," VP and principal analyst David Mercer said in a statement on the report. "Companies relying solely on digital revenues for growth may struggle in the second half of 2008, as consumers and advertisers alike tighten budgets."
Apple iTunes revenues were off 7% in the quarter, though analysts say that's a seasonal trend for the service, which saw a 6.9% slowdown the same period last year.
Google was the only company among the leading five companies to post second quarter growth. The company's revenues were up 3.5%, still lower than the 5.7% growth it posted second quarter 07.
Outside of the top 5, Fox Interactive Media posted 7.1% growth in the quarter, while Universal Music Group Digital saw 4.3% growth and Warner Music Group Digital saw 1.2% growth.
On a yearly basis, digital revenues continue to see substantial growth. For the last 12 months through the end of the second quarter, the Index posted 5.8% growth.
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Digital Feeling Economic Slowdown - August 19, 2008
Digital media revenues posted their slowest quarterly growth ever in the second quarter of the year, according to a new report out from Strategy Analytics' Digital Media Index.The index tracks digital revenues on a quarterly basis among Apple iTunes, Yahoo!, Microsoft Online and other leading digital companies.
For the second quarter of this year, growth was .8%, down from 3.3% growth in the first quarter and 3.4% growth during second quarter 2007.
"It seems that not even an emerging sector such as digital media is immune to the global economic downturn," VP and principal analyst David Mercer said in a statement on the report. "Companies relying solely on digital revenues for growth may struggle in the second half of 2008, as consumers and advertisers alike tighten budgets."
Apple iTunes revenues were off 7% in the quarter, though analysts say that's a seasonal trend for the service, which saw a 6.9% slowdown the same period last year.
Google was the only company among the leading five companies to post second quarter growth. The company's revenues were up 3.5%, still lower than the 5.7% growth it posted second quarter 07.
Outside of the top 5, Fox Interactive Media posted 7.1% growth in the quarter, while Universal Music Group Digital saw 4.3% growth and Warner Music Group Digital saw 1.2% growth.
On a yearly basis, digital revenues continue to see substantial growth. For the last 12 months through the end of the second quarter, the Index posted 5.8% growth.
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