Mobile users diss premium content

We'll have it - as long as it's free

By John Oates • Get more from this author

Posted in Mobile, 21st March 2006 11:50 GMT

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Mobile users will use almost any kind of media content on their phones, but they won't pay a premium for it.

Operators should view mobile content as a way to reduce churn rather than as a new revenue stream, according to a worldwide survey from accountants KPMG. Forty per cent of those questioned said they would not pay a premium for mobile content.

Sean Collins, global head of KPMG's Communications practice, said: "Mobile service providers will need to stop thinking of converged services purely as a revenue booster...This is a generation of consumers raised in the internet era, where content is perceived as being free. Therefore, service providers need to follow the internet example themselves. Users told KPMG they would rather have one provider for all services and they also want to receive just one consolidated bill."

Ovum senior analyst Michelle Mackenzie said: "It is not surprising the survey reveals that 40 per cent are unwilling to pay a 'premium'. We will only pay a 'premium' for mobility if there is a clear value associated with it. The value of mobile access for many content services is not always so clear."

But, Mackenzie believes there is still demand for wireless services, predicting wireless service revenues will grow 13 per cent to $193bn by 2010, and data revenues growing by 78 per cent to $52bn - but 65 per cent of this will still be from messaging.

The research also revealed some global differences. Asian users were likely to have used various entertainment services on their phones - which KPMG puts down to long commute times on public transport. In contrast, users in Europe and North America are more likely to have used their phones for accessing email or the internet.

KPMG enlisted the help of Taylor Nelson Sofres to carry the the survey, which garnered the opinions of 3,500 mobile users in Asia Pacific, Europe and North America.

More details on KPMG's website here. ®

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