Revenue Leakage on Mobile Content

Thread Title:
Revenue Assurance for Mobile Content
Thread Description:

As the market for mobile content grows the potential for revenue leakage does aswell. Threadlinked above is a look at the problems facing mobile content providers outlining the major business aspects and potential pitfalls for revenue leakage in an emerging industry:

Some figures:

he Yankee Group predicts that the U.S. mobile data market alone will represent $15.6 billion by 2008. QPass, for one, has seen tremendous growth in mobile content usage among its customers. The average transaction value for subscribers of QPass customer providers is $2.28. In September, QPass mobile operator customers achieved an average of $7.55 per purchasing subscriber, with an average spend of $36 to $42 per year for mobile content services.

Key problems:

To remain competitive, mobile operators often will roll out these content services before they are able to bill for them. When one U.K. mobile operator decided to roll out MMS, it offered the service free as a customer promotion, according to Megisto Chief Technology Officer Joel Halpern, but the promotion was free simply because the operator didn't know how to charge for it.

By far, mismanaging the relationships between all of the various entities is one of the greatest leakage points for mobile content. The process of revenue sharing and settling with third parties increases the need to accurately track revenue, and it only heightens the impact of potential leakage for both the content provider and mobile operator.

Just determining who is actually suffering the leakage—the mobile operator or the content provider—is a challenge. Often, neither player has the visibility needed to manage the transaction from start to finish.

It's a fairly detailed article but a skim through the key points gives a good overview of the industry itself and some of the problems it currently faces.