Valista Poll Predicts the End of Premium SMS
Published on: 20th Jul 2006
Note -- this news article is more than a year old.
Valista has published the results of a survey conducted at the Mobile Content Off Deck conference held in New York City last week. Almost half of the industry insiders polled believe that in five years the consumer's bill will be the most widely used method for purchasing on and off deck content. Only 6% of respondents predict that SMS shortcodes will be the primary payment option in 2011.
"The Jamster lawsuit last year clearly demonstrates the limitations of using SMS shortcodes as a payment instrument," said Raomal Perera, CEO of Valista - although we cannot see how switching the payment method would have changed this - as the lawsuit was based around the business model of luring customers into subscription services with free ringtones. The fact that the customer was then billed by SMS was almost irrelevant.
"The nature of mobile devices demands a simple, but secure payment method. People are more likely to make a purchase using their mobile device if the payment is a seamless part of their purchasing experience. Adding mobile purchases onto a user's existing bill is the most convenient and transparent method for mobile transactions."
The survey also polled industry insiders on the topic of digital rights management. The results uncovered that 48% of respondents believe that operators should be responsible for ensuring that the correct revenue is distributed among all parties involved when selling mobile content, while 38% said that the responsibility lies with third-party vendors such as aggregators and billing providers. None of the respondents thought that media companies should hold responsibility for ensuring accurate revenue distribution through the mobile channel.
Marketing in the mobile world is not easy, as almost 60% of those polled believe that driving customers to a mobile site is the most significant challenge content providers have when selling direct-to-consumer. And the survey found that 70% of respondents believe that brand recognition is an important factor to consumers when purchasing off-deck content. In addition, more than one-third of those surveyed cited carrier cooperation and mobile search technology as key barriers to provisioning off-deck mobile content."