Parks Associates Blog

Tuesday, February 15, 2011

Verizon NFL Mobile, Sprint Navigator, and Vodafone’s MusicStation among popular mobile content services

Almost 50% of U.S. mobile phone users pay for mobile Internet access, and the popularity of mobile data services will continue to grow revenues for carriers. Percentages of paying consumers are even higher for smartphone owners: 95% pay for SMS, 92% pay for Internet access, 83% pay for mobile email, 63% pay for mobile navigation, and 43% pay for mobile video.

In Mobile Data: Analysis and Forecasts, Parks Associates analysts forecast mobile data services, including messaging, Internet, apps, entertainment services, and machine-to-machine (M2M), will generate $500 billion in global revenues for mobile carriers in 2015, up from $204 billion in 2010.

Popular mobile content services include Verizon NFL Mobile, Sprint Navigator, China Mobile’s mobile newspaper service, and Vodafone’s MusicStation service. Carriers will derive most data revenues from access services, and content services, including mobile music, videos, games, ringtones, apps, and navigation, will supplement mobile access data services.

Global mobile carriers are poised to take advantage of consumers’ strong appetite for communications, information, and entertainment content on their mobile devices, but they must adapt to maximize these revenues in this hypercompetitive market.

Carriers must compete with their traditional peers as well as content owners, developers, and distributors, who can circumvent a carrier's ecosystem to offer content or services through app stores or on the mobile Internet. The old walled garden is porous due to disruptive forces such as Apple’s integrated business model. To stay relevant and dominant, carriers must focus on making their networks the most attractive option for content delivery and distribution.

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