30th April 2004 - A global market study conducted for
Nokia shows that mobile content services hold promising
revenue potential, with study respondents willing to pay
for such services 28% more than they pay for their current
services today. The study, undertaken by the international
research firm NOP World in nine countries in North America,
Europe and Asia, sought to answer what kind of mobile
content people prefer, how they would like it delivered
(download, streaming or browsing), and how much they would
pay for it. The main body of the study is based on interviews
with people who are mobile phone users and have access
to the Internet.
The main findings of the study indicate consumers have
a preference for entertainment content and information
that is considered useful whilst "out and about".
Overall, enhanced content services seem to generate high
interest and when fully available could even lead consumers
to reduce their usage of newspapers, TV and the Internet.
The survey also found that while consumers would spend
significantly more for new mobile content services, service
providers will need to do more to explain the options
available and differentiate services to serve all age
groups.
In particular, younger consumers are willing to pay an
extra €10 monthly, an amount that decreases significantly
with the age of the respondents. In contrast to age, sex
is less important. Between men and women, the survey found,
there are no large differences in the willingness to spend
more for mobile services.
The same is true when it comes to overall interest in
mobile content service. The survey indicates that men
and women are equally interested in mobile content - except
sport content, where 52% of men are interested compared
to 29% for women. Again, younger respondents to the survey
were significantly keener than were older groups.
In general, the preferred delivery method seems to be
browsing, rather than downloading or streaming, but this
depends on the content being accessed. Downloading is
of value for gaming and music while streaming and browsing
are seen as best suited where information is updated frequently.
When accessing local news, there is a high preference
for streaming or downloading. Perhaps surprisingly, delivery
mechanisms do not drive the amount of money consumers
are willing to pay - the content type itself is the driver.
Current mobile content usage is dominated by downloading
ringtones (used by 40% of the respondents), followed by
icons/screen-savers (22%). However, current mobile content
services are perceived as being too expensive. For example,
48% of those respondents who have never used any content
service rank cheaper services as the prime factor that
would entice them to use content services.
The study also shows how technical and attitudinal issues
will be barriers unless properly addressed by improved
service design, marketing and support. These issues vary
by age group. For example, older consumers need greater
education and hand-holding, while younger users have different
expectations about ease due to their greater experience
using the Internet.
"This is one of the most comprehensive studies into
what consumers really want from content on the move",
says Janne Laiho, Head of End User Research, Nokia. "Age
being a determining factor isn't surprising for a new
service, but this survey does reveal a quite sharp divide
between the young and the not so young. This could be
an issue for operators in mature markets where the population
is aging and is more affluent than younger segments. Significantly
our research shows that quite straightforward changes
will overcome current barriers, and that mobile content
is set to offer a serious challenge to other media even
among older age groups".
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