Tuesday, March 21, 2006

MobHappy's Take on the KPMG Study

Carlo at MobHappy comments on the KPMG study: (PDF)

"KPMG says operators should use the services as a churn reduction tool, which is maybe about half right. But, again, operators need to help create an ecosystem in which advertising can support content, so that the end user doesn’t always have to pay. Operators won’t want to eat the costs of providing content to users — otherwise they’d have done so already. They’re not looking to offer mobile television because they think it will keep people from switching to one of their rivals, as those companies will also be offering essentially the same services. They want the revenue boost.

But that revenue boost doesn’t have to come solely from user subscriptions, and there are other ways to monetize content than usage fees. Content doesn’t have to be free, either, but users don’t always have to be the ones paying the bill."

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