Incredibly, the cost of downloading a full-length digital song from an off-portal mobile site can cost users anything from practically nothing to $15.00 in data charges, depending on their operator and mobile data plan.
But if the user chooses to buy the song from their operator's mobile portal instead, then the data charges are usually waived.
With the cards stacked so heavily against them, most brands that want to sell music downloads directly to mobile users are unable to do so, at least not if they want to make money. Accordingly, this report is focussed on identifying solutions to this problem.
The report begins by reviewing the four market forces that are driving brands towards the delivery of rich media content using a D2C strategy. We explain what's in it for brands and their customers.
Next, the report explains the three categories of D2C mobile music service and provides a detailed description of an example service within each one. Current market rates for mobile data in Germany, the UK and the U.S. are used to illustrate the adverse impact that mobile data charges would have on these services.
The report then analyses the relative merits of the two potential solutions to this problem by looking at the pros and cons from the perspective of mobile operators, service providers, third parties and users. A recent implementation of an off-portal mobile music download service is outlined that is based on wholesale data and is currently in a trial phase.
As the axis of the D2C market, the mobile operator's position is studied by reviewing the changing business strategies of mobile operators generally, together with several recent market trends which extend well outside the music area.
The report concludes by describing a future D2C mobile content environment where the cards will be stacked very differently to how they are today.
Topics Covered Include:
- Market Drivers
- D2C Service Concepts
- The Pain Point
- Operator Perspective
- Market Developments
Rich Media Content Delivery
Leverage of Corporate Assets
D2C MOBILE MUSIC SERVICE CONCEPTS
Categories of Service Provider
THE PROBLEM: PAIN POINT
Off Portal Sites
On Portal Sites
Zero Sum Game
Mobile is a Premium Channel
Higher Cost of Providing Network Capacity
Provide Value-Added Merchant Services
Pricing the Value Being Delivered
Conceptual Implementation: New Tariffing Regime