Feeds

Mobile entertainment prepares for growth

Diddle-ee-hee-hee-hee

  • alert
  • submit to reddit

High performance access to file storage

According to a new report, Western European consumers will spend €23 billion on non-voice entertainment services through their mobile phones.

The report said that currently, European consumers spend around €2.7 billion on various non-voice content and entertainment services for their mobile phones, a category that includes ringtones, logos, games and SMS based content.

This accounts for nearly 3 percent of the total amount (€97 billion) Europeans spend on mobile services.

But over the next five years, consumer spend on such services will increase both as an absolute figure, and as a percentage of the total spend, to hit €23 billion or 17 percent.

The research company behind the report, UK based Analysys, claims this trend is a sign that "attempts to revive [operator] revenue through non-voice services are starting to pay off."

Katrina Bond, the author of Charging and Revenue Sharing for Mobile Content and Entertainment claims that until now mobile operators have not benefited in full from these services, because in most cases payments are not made through the mobile phone bill or prepaid account.

"Many of the content providers interviewed for the report would prefer to use operators' billing systems because of the convenience to themselves and to customers," said Bond.

"But they are frustrated that operators have been slow to upgrade their billing systems," she said.

Bond claims that with better billing systems in place, operators will get a greater share of the revenue from these services. Furthermore, easier billing will encourage more developers to create new, compelling applications, driving use by consumers.

"It is not just the high share of mobile content revenue demanded by many operators that is slowing market development, but also the closed nature of the revenue-sharing arrangements that they are negotiating," Analysys claimed.

Negotiation takes time and lack of information about existing deals creates uncertainty in the market.

The report said that although operators are starting to promote open revenue-sharing arrangements, the margins of many independent portals, content aggregators and content and games developers will continue to be put under pressure, with consolidation being the inevitable outcome.

"Not only do mobile operators hold a strong position in this market," claimed Bond, "but at the other end of the value chain media companies and major content brands are recognising their ability to generate additional network traffic for operators and are demanding a higher share of mobile content and entertainment revenue." © ENN

High performance access to file storage

More from The Register

next story
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
Broadband Secretary of SHEEP sensationally quits Cabinet
Maria Miller finally resigns over expenses row
Skype pimps pro-level broadcast service
Playing Cat and Mouse with the media
Beat it, freetards! Dyn to shut down no-cost dynamic DNS next month
... but don't worry, charter members, you're still in 'for life'
Like Google, Comcast might roll its own mobile voice network
Says anything's possible if regulators approve merger with Time Warner
EE dismisses DATA-BURNING glitch with Orange Mail app
Bug quietly slurps PAYG credit - yet EE denies it exists
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.