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| The mobile phone has a built-in payment system |
The mobile phone has a built-in payment system.
This is perhaps the key feature of the mobile phone, and one reason why content for mobile phones in many areas generates as much or more revenue than content for the Internet. Every mobile phone has a built in payment mechanism – the SIM card. Billing is easily handled through the user’s mobile network. Not only do mobile phones have this built-in payment mechanism, paying for content and downloads has been built into the way that consumers use their phones. There is less of an expectation that goods and services will be free.
There are also a number of services that turn the mobile into a virtual wallet or bankcard, bringing banking and payment services to people all around the world.
iChannel, a mobile news ticker feed in Japan, generates US$ 192 million per year in subscriptions for its US$ 2 a month service. It has more paying subscribers on this single service that all online newspapers in the world combined (Moore, 2008). Similar cases can be made for games, music and other mobile content.
The implication for marketers: Consumers are willing to pay for services and content on their mobile. Advertising is not the only way to generate revenue for content.
This is perhaps the key feature of the mobile phone, and one reason why content for mobile phones in many areas generates as much or more revenue than content for the Internet. Every mobile phone has a built in payment mechanism – the SIM card. Billing is easily handled through the user’s mobile network. Not only do mobile phones have this built-in payment mechanism, paying for content and downloads has been built into the way that consumers use their phones. There is less of an expectation that goods and services will be free.
There are also a number of services that turn the mobile into a virtual wallet or bankcard, bringing banking and payment services to people all around the world.
iChannel, a mobile news ticker feed in Japan, generates US$ 192 million per year in subscriptions for its US$ 2 a month service. It has more paying subscribers on this single service that all online newspapers in the world combined (Moore, 2008). Similar cases can be made for games, music and other mobile content.
The implication for marketers: Consumers are willing to pay for services and content on their mobile. Advertising is not the only way to generate revenue for content.
