Research Notes

The Internet has helped radically change the media industry

now the mobile industry is launching a number of new products that some will perceive as the light at the end of the tunnel – while others will experience this as an oncoming train.

There is no doubt that the Internet has been extremely important for the way the media industry does business and for the revenue streams that are the foundation for large parts of the media world. Four of the largest challenges that the Internet has given the industry are:

1.       The speed at which news is transmitted – it is now and not tomorrow
2.       The transparency of the world, a piece of good news in New York is global news within minutes.
3.       A lot of news is free – customers can receive a great deal of news quickly, easily and for free.
4.       The Internet has very few micro payment solutions and customers are not especially happy with using their credit cards to pay for services and news.

In the mobile world things look a little different. For a start there is an effective micro payment solution that functions across mobile operators and that does not require that customers need to purchase some sort of payment product – this solution is called premium SMS and WAP billing.

Secondly, customers are willing to pay for a number of the services that they use on their mobile phones. The sales of ring tones and Java games is gigantic and people are happy to pay 3-4 euro for a ring tone, while it is difficult to sell one song for 1 euro.

The business model from the mobile world is in all its simplicity, that the mobile operators’ billing systems are used to invoice services, whereafter the revenue is split between the operators and those that have created, marketed and sold the services.

In Strand Consult’s new report Show me the money – The future Business models for mobile Broadband Services  we have described how this business model, that was invented in the mobile world, is now spreading to the mobile broadband world and from there on to the traditional broadband world. We have named this model the BCAP model (Broadband Content and Application Provider model).

We know that the mobile broadband market will give the media industry some completely new business opportunities and we have described in our report the opportunities that traditional media companies can take advantage of. We have also described the opportunities that this model will give market players like Facebook, Google, MySpace, MSN, Yahoo and many others doing business on the Internet.

We believe that this business area will be huge and we know that the mobile services market today generates 32 billion USD annually. The question is whether the market for services delivered via mobile broadband connections will actually be bigger than the market for services delivered to mobile phones? We believe it will be.
See for yourself, order our report Show me the money – The future Business models for mobile Broadband  today and gain the knowledge that can help ensure your future success tomorrow.
More information: Show me the money – The future Business models for mobile Broadband Services

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