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 13, 2006)
Jeremy Maddock is a well-known technology blogger who writes articles about cell phones, cell phone carriers and the telecommunications industry in general.
