Skip to main content

Mobile Media Direct to Consumer (D2C) Model

Media and entertainment players are looking at ways to target the consumer in a more personal and direct way without losing their revenue share of the lucrative mobile entertainment market to the mobile operators.

Mobile Content Direct to Consumer, a new report from Informa Telecoms & Media, looks at this major new development in the delivery of mobile entertainment. The mobile phone is becoming an additional channel for distributing entertainment, with full music tracks, ring tones, games and more already captivating the mobile consumer, as well as the emergence of mobile TV and video-on-demand.

Mobile entertainment is becoming the 'next big thing' and the media brands, content providers and mobile operators are beginning to see the revenue opportunities offered by this previously untapped market and are devising strategies to cash in as quickly as they can. But this development means that media companies and mobile operators need to work together - and that is leading to problems. The content providers want to grab as large a share as they can and are looking at ways of bypassing the mobile operators.

"When two industries accustomed to calling their own shots try to chase $42 billion together, sparks fly," says Mark Halper, author of the report. "That's what's happening in mobile entertainment, which awkwardly pairs mobile juggernauts like Vodafone with entertainment heavyweights like the Hollywood studios. Both want 70 percent of the revenue. This may be 'new media' but it's not new math. Two times 70 percent doesn't add up. So while powerhouses like Disney and BSkyB are working with the operators, they're also finding their own direct routes to consumers' phones. The starting gun has sounded in the direct-to-consumer race."

The report shows that mobile entertainment revenues are expected to double in the next five years - from $21.3 billion in 2006 to $42.1 billion in 2010 worldwide, which is putting a smile on the media and entertainment companies' faces. But expect a major squabble over the sharing out of such a large pot.

Popular posts from this blog

Retail Supply Chains Enter the AI Age

Retailers are forging ahead in adopting artificial intelligence (AI) tools to master the increasingly complex world of supply chain management. According to the latest ABI Research market study, more than 90 percent of global retailers are deploying AI to bolster decision-making and optimize operations. This movement underscores a pivotal transformation: retail supply chains evolve from static cost centers into intelligent systems capable of real-time adaptation. Driven by pressures from fulfillment complexity, labor challenges, and rising customer expectations, AI now sits at the heart of next-generation retail strategy. Retail Supply Chain Market Development Traditionally, retailers have struggled to balance speed, cost efficiency, and customer satisfaction. Now, the combined forces of e-commerce growth and ongoing geopolitical disruptions have amplified this challenge. Warehouse congestion, longer lead times, and volatile demand forecasts have underscored the need for predictive and...