As broadband penetration in the country expands rapidly; the demand for premium or paid online content applications such as music, gaming and video/movies has also escalated. This is presenting exciting opportunities to the consumer broadband market and participants.

This market earned revenues of $2.45 billion in 2005 and is likely to exceed $10 billion in 2012, according to a new analysis from Frost & Sullivan.

"For mainstream consumers, online content has been inextricably linked to Internet usage and rising broadband penetration is further cementing this bond," notes Frost & Sullivan research analyst Piyush Arora. "As broadband service providers continue to enhance speeds and bandwidth limits for their subscribers, new opportunities are cropping up in terms of content applications that can be delivered on these fast connections."

Controlling unauthorised online content distribution, piracy of copyright protected content, and ensuring that the various competing digital rights management (DRM) technologies and standards are compatible with each other are some of the important challenges confronting all market participants.

"Online content distributors and specialist content providers must continue to collaborate with content owners, technology companies, broadband service providers and other stakeholders to curb the illegal distribution of digital content," says Arora.

Participants must also take concrete steps to resolve the DRM interoperability issues, to encourage consumers to actively use the Internet as a mainstream medium for accessing paid content.