Many Mobile Content Providers Selling Directly to Consumers

Aug 29
18:04

2006

Jeremy Maddock

Jeremy Maddock

  • Share this article on Facebook
  • Share this article on Twitter
  • Share this article on Linkedin

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.

mediaimage
A increasing number of small mobile content providers are using a new,Many Mobile Content Providers Selling Directly to Consumers Articles 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)