Direct Carrier Billing implementation to fuel growth
Growth in mobile content revenues will primarily be fuelled by an increased opportunity for content monetisation via DCB (Direct Carrier Billing) on smartphones, along with an upsurge in game, video and e-book purchases via tablet devices. This is one of the main conclusions from the latest report from Juniper Research entitled, ‘Mobile Content Business Models: OTT & Operator Strategy & Forecasts 2013-2017 ‘. It predicts that over the next three years, annual revenue generated from content delivered to mobile handsets will reach $65 billion by 2016. That’s an increase of nearly $25 billion.
“While the availability of direct carrier billing is patchy, the various benefits which the mechanism offers – higher conversion rates and opportunities to monetise unbanked customers – suggest that deployments will rise significantly in the medium term,” observes Dr Windsor Holden, the report’s author.
He argues that whilst the primary billing mechanism for OTT (Over –The-Top) storefronts will remain the credit/debit card, major storefronts such as Google Play and BlackBerry App World are increasingly employing direct carrier billing as a complementary monetisation mechanism.
Significantly, the report finds that music and video now account for nearly half of all mobile content revenues, although the increased video traffic has implications for mobile network capacity.
It also found that the convergence of the gaming and the social networking spaces has been one of the major drivers behind the post-download monetisation opportunity.
Juniper says that consumer gaming spending is expected to migrate to tablets from dedicated portable gaming devices such as the Nintendo 3DS and the Sony PS Vita.
e-books currently comprise the largest revenue stream on tablets, with e-reader applications such as Amazon, Nook and Kobo proving as popular as the respective e-reader devices.
A whitepaper entitled, ‘The Mobile Content Challenge’ is available from the Juniper website here.