Driving Content Revenues - New Operator Strategies
2008.09.08   |   35 pages   |   New Services & Technologies

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Despite early failure to achieve forecasts that perhaps owed more to MNOs' needs (in anticipation of falling voice revenues) than a clear understanding of market potential and user requirements, mobile content has expanded rapidly since the days of the market being limited to premium SMS used to deliver ringtones and wallpapers. Improved technologies and delivery mechanisms such as GPRS, EDGE, 3G and HSDPA have meant that the range of content has been able to expand beyond personalisation and now includes most types of information and entertainment services available through other media such as the Internet and broadcast channels. In addition, mobile has a natural advantage in being able to target individuals or networks of individuals and deliver relevant services or advertising to them more effectively than any other channel. Many operators look to content as a key source of revenue growth, as revenues derived from basic service delivery and voice minutes continue to shrink. However, the lessons of the early days of mobile data are clear and MNOs need to develop a strategy that engages users and takes advantage of mobile USPs in order to drive new growth. This report looks at how the market has progressed since the earlier MMD reports Mobile Content: Pricing and Revenue Opportunities and Mobile Content: Market Development Strategies (both September 2004). The report quantifies the addressable market opportunity for mobile content, the new business models that could support new revenue streams and strategies that operators should consider adopting.

Keywords: Service Revenue, Music, generating content revenue, content revenue models, mobile content strategy, Mobile Content, SMS, Mobile Content Revenue,

Table of Contents
1 OVERVIEW 1
2 INTRODUCTION 2
2.1 Background to the Report 2
2.2 Definitions 3
2.3 Report Content 3
2.4 Currency and Conversions 4
3 MNO CONTENT REVENUE GENERATORS 5
3.1 Transmission of Mobile Content 5
3.2 Usage of Mobile Content 8
3.3 Mobile Content Types 8
3.3.1 Mobile Music 9
3.3.2 Mobile Games 9
3.3.3 Mobile Video 9
3.3.3.1 Video Downloads 10
3.3.3.2 Real Time TV 10
3.3.4 Mobile Radio 11
3.3.5 Mobile Created Content 11
3.3.6 Music 11
3.4 Web 2.0 Social Networking Groups 13
3.5 Mobile Commerce Applications 13
3.6 Advertising 14
4 CHANNEL DEVELOPMENTS 16
4.1 Content Portals 16
4.2 Social Networks as a Channel 16
4.3 Retail Stores 17
4.4 Handset Manufacturers' Own Channels 18
4.5 Content Aggregators 19
4.5.1 Buongiorno 19
4.5.2 Jamba!/Jamster! 20
5 CONTENT REVENUE MODELS 22
5.1 Historical Context 22
5.2 Handset Manufacturers and MNOs 22
5.3 Advertising Revenue 23
5.4 Affiliate Marketing 26
5.5 Where's the Money? 28
6 STRATEGIES FOR REVENUE GROWTH 30
6.1 Partnering 30
6.1.1 iPhone 30
6.1.2 KDDI and Sony 31
6.2 Develop 32
6.3 Acquire 32
7 KEY FINDINGS 33
7.1 An Advertising-only Model is not Enough 33
7.2 Revenue Sharing Models are Embryonic 33
7.3 Successful Content Fits with Mobile's Strengths 34
8 RECOMMENDATIONS 35

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