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Many Mobile Content Providers Selling Directly to Consumers

A increasing number of small mobile content providers are using a new, much more direct method of getting their products into the hands of customers.

A increasing number of small mobile content providers are using a new, much more direct method of getting their products into the hands of customers.

These companies have discovered the benefits of selling their wares directly to customers through brick-and-mortar stores, and offline promotions. San Jose-based PlayPhone Inc., for example, is selling $5 to $20 prepaid gift cards towards mobile games, ringtones, wallpapers, and music videos, via retail channels, rather than relying on distribution deals with carriers.

This growing "off-portal" approach allows for a much higher profit margin for the content providers, and currently accounts for about one third of all digital content sales. The business model as a whole reportedly generated a total of almost $1.4 billion globally in 2005.

(Originally published by TeleClick.ca on April 13Free Web Content, 2006)

Article Tags: Mobile Content Providers, Mobile Content, Content Providers

Source: Free Articles from ArticlesFactory.com

ABOUT THE AUTHOR


Jeremy Maddock is a well-known technology blogger who writes articles about cell phones, cell phone carriers and the telecommunications industry in general.



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