Mobile Services will be a major source of income for the Media Sector
|There is already money to be made on mobile services – as some media companies have found out and have been taking advantage of during the past year. But it is still only a few media companies that have spent the time and effort looking at this new lucrative market.|
|There is already money to be made on mobile services – as some media companies have found out and have been taking advantage of during the past year. But it is still only a few media companies that have spent the time and effort looking at this new lucrative market. This is market that according to Strand Consults latest report “How to make money on mobile services” a picture of the current & future Market for Mobile Services in Europe will grow to a market value of Euro 23 billion in 2005.|
So why are the mobile operators not being stormed by media companies who want to get their content on the mobile platforms and start making money? There are a number of reasons, but one of the major hurdles for many media companies is that they are comparing the mobile markets with the Internet. So many media companies are reaching the following conclusions:
·The mobile service market is a “New Media” market – just like the Internet
·We have spent a lot of money getting on the Internet – but basically lost it all
·We do not want to make the same mistake again
·Lets go back to our core business and wait for a while
Add to this that many of the large media companies have either cut back or closed down their New Media departments, laying off those employees that actually had an understanding of the opportunities and mechanics of the New Media world and you are left with a media company that has put themselves in a position where they neither can evaluate the market for mobile services, nor make any kind of decision as to what they should do about it.
As mobile operators position themselves for 2.5G and 3G rollout, the first content deals have already been made. But they are being made with those few content providers that have spent the time and effort working on their mobile strategy, defined what products and content they want to offer, when they want to offer them, and which partners they would prefer to work with.
Our newest report ” How to make money on mobile services” shows that the market for European mobile services will grow from Euro 1.7 billion today to Euro 23 billion in 2005. And that is actually a conservative estimate, based on the operator’s slow progress in offering attractive revenue sharing business models on the upcoming technologies to help kick start the market by making it attractive for all content owners to start developing mobile services. No matter how big the market is, the size of the split between the operators and the media companies is not just dependant on what the operators will offer. The media companies need to have a very well defined strategy as to what content they want to offer on which platforms, when it should be available and what they want to be paid for it!
By understanding the mechanics of the mobile market and with a strong strategy and the right content, the media companies are in a much better position to negotiate strong partnerships with the mobile operators – thereby ensuring a much larger slice of the revenue than if the operators call all the shots!
Our estimates, based on the value and growth of today’s European market for mobile services, show that the following sectors will benefit the most from the expanding market:
2.Publishing – weekly magazines
The latest reports from Strand Consult about the Korean mobile market, where they already have a functioning “3G” platform, very similar to what we will see in Europe, with colour terminals deployed and running download speeds of up to 144 Kb/s, show a huge increase in revenue, mainly derived from the many services available to the users. A sure indication that there will be a substantial market for mobile services on the European 2.5G and 3G platforms and that the content providers and mobile operators in Europe, need to reach an agreement on how the business and revenue models will work.
Strand Consult believes that those Content Providers who have a strongly defined mobile strategy will be the most attractive partners for mobile operators. Today Strand Consult delivers information to some of the largest International media companies, on the influence and opportunities that the mobile services market has – and will have – in the media sector, helping them define their mobile strategies, ensuring that they understand the way that the mobile operators work and helping them position themselves and their content in the middle of the 2.5 and 3G road. Those Content Providers and Public Service Broadcasters who still believe that “Content is King” and have cut down New Media focus, will most probably be bypassed as operators choose content provider partners.
|More information on the report|