As reported on Rafat Ali’s PaidContent this morning: “A report by Screen Digest has found that massively multiplayer online games generated more than $1 billion in 2006 in the West (North America and Europe), notes the BBC. The report claims 87 percent of the revenue is from subscriptions, while virtual item sales and in-game advertising also brings in revenue. The NA subscription market was put at $576 million, while Europe was worth $299 million. It’s a pretty big figure, but if you note that World of Warcraft has 3 million subscribers in the west (out of 8 million globally) paying monthly subscription fees of $13-15, it becomes more believable. WoW accounted for 54 percent of the subscription market in 2006, pulling in $471 million in revenue. Screen Digest predicts that the MMOG subscription market will grow to over $1.5 billion by 2011, with Germany remaining the largest European market followed by the UK. France will see the most significant value growth of over 16% CAGR over the term, whilst Spain and Italy will both experience subscription value CAGR of more than 15%.”

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