Mobile Carriers, Content Providers Must Strike a Balance to Grow US Media Market
Posted by geoffwhiting on December 20, 2007
A new study from Analysys says that mobile carriers and content providers need to work together to better capitalize on and grow the mobile media entertainment (MME) market. The study, “Mobile Media and Entertainment Markets in the US: Value chains and pricing models,” expresses that carriers’ network upgrades to 3G give the opportunity for massive market growth, but it is hard to escape the constant jockeying for position on the mobile Internet market.
“Overly complex pricing models for MME services, as well as carriers’ reluctance to withdraw from areas of the MME value chain that do not play to their strengths, are inhibiting MME market growth,” said Alexandra Rehak, US research director at Analysys and lead author of the study. “Verizon’s recent decision to open its network to third-party applications suggests that US carriers are starting to realize that they cannot do it all themselves.”
Another big focus of the report is the impact that online service providers and vendors are having on the value of MME. This includes looking at, among others, Apple, Nokia, Google and Facebook.
Highlights and important findings of the report include:
Complex pricing and users’ difficulty in discovering services are inhibiting take-up of MME offerings.
Carriers will continue to develop their own portals and MME service offerings to help maintain market share and customer loyalty.
The sheer variety and amount of revenue share arrangements for MME services involves so many parties, that content providers don’t generate sufficient revenue solely from their end-users.
The most successful strategy for any company in the MME market will be to focus on selected, specific areas and improving them instead of trying to be a jack-of-all-trades.
The report examines the ways in which pricing models are developing in the US market. It tries to help all parties understand revenue structures, business models and pricing for MME services and content. It offers an in-depth look at a number of mobile services, including TV and video, music, games, social networking, user-generated content, personalization and adult services.
The report is available from Analysys for $3,000 (£1,500).
