Why The Mobile Content Market Generates More Revenues Than The Web
Guardian writer Victor Keegan has written today about why mobile content providers have been able to generate greater revenues than their brethren on the web:
Revenues from the web are about $25bn (£12.5bn) but the content on mobile networks is reckoned by Informa to be worth $31bn - and that is before music and mobile TV take off in a big way.
Tomi Ahonen, a strategy consultant, points out that whereas porn and gambling drove revenues on the internet, five content groups are more successful than adult material on mobile phones: music, infotainment, images, videogames and web browsing. He reminds us that in 2005 one annoying ringtone, Crazy Frog, outsold all of iTunes. A key reason is that most content on the web is free whereas mobile phones arrived with a payment system pre-installed for calls, followed by a premium service for texting. If the web had had its own payment system it would have taken a different course.