New Content Drives the U.S. Premium Mobile Market

The U.S. premium mobile content markets continue to exhibit strong growth, allowing mobile operators to increase data revenues and counter the effects of decreasing voice revenues. While high-speed networks, capable devices, participation of large media organizations in the mobile ecosystem, effective marketing, and promotions are some factors driving service uptake, the challenge is to bundle multiple content categories to present a unified client experience.

Intelligent search technology and analytics can be of crucial assistance in achieving this objective.

New analysis from Frost & Sulliva, reveals that on-deck revenues in this market totaled US$1.2 billion in 2005, and is likely to reach US$5.1 billion in 2010.

"Although U.S. mobile subscribers have historically used content offered by their own service providers, this has changed considerably in the past," notes Frost & Sullivan Industry Analyst Vikrant Gandhi. "An important factor in this change is the considerable increase in the number of specialized companies such as off-deck storefronts, mobile virtual network operators (MVNOs), and multicasting services, which are introducing innovative premium mobile content to subscribers."

Reflecting this trend, 30 percent premium content transactions can be attributed to off-deck industry participants and MVNOs such as Amp'd Mobile, Helio, Virgin Mobile and others that have consistently beaten the industry average in terms of premium content usage. The industry has learned from the successes of these initiatives and even larger tier-I mobile operators are trying to adopt these best practices. Such developments lead to the introduction of more compelling applications, aligned with the subscribers' actual needs and expectations, boosting uptake.

Nevertheless, the major challenge for market participants lies in offering multiple content pieces in a bundled manner to the end user. Especially since mobile operators in the U.S. have segmented offerings according to various applications such as ringtones, games, graphics, mobile video services, mobile information and others.

"Different categories of applications such as ringtones, graphics, games, and video clips, developed around a particular theme or topic, could be bundled together," says Gandhi. "Early movers have embraced this approach with notable success."

Intelligent search and recommendation technologies can help direct mobile subscribers to the most suited content.

The ultimate objective would then be to extend this feature to off-deck premium mobile content and the Internet."

Posted to the site on 16th February 2007