According to a recent report by Juniper Research, annual revenue generated from content delivered to mobile handsets and tablets is expected to increase by nearly $25bn over the next three years, reaching $65bn by 2016. As per the report, the growth would primarily be fuelled by an upsurge in game, video and eBook purchases via tablet devices, allied to increased opportunity for content monetisation via DCB (Direct Carrier Billing) on smartphones.
The report Mobile Content Business Models: OTT & Operator Strategy & Forecasts 2013-2017 observed that eBooks currently comprise the largest revenue stream on tablets, with eReader applications such as Amazon, Nook and Kobo proving as popular as the respective eReader devices. However, tablets are experiencing a sharp increase in both paid and free video applications, while consumer gaming spend is expected to migrate to tablets from dedicated portable gaming devices such as the Nintendo 3DS and the Sony PS Vita.
The report also found that while the primary billing mechanism for OTT (Over The Top) storefronts will remain the credit/debit card, storefronts such as Google Play and BlackBerry App World are increasingly employing direct carrier billing as a complementary monetisation mechanism. As report author Dr Windsor Holden observed, “While the availability of direct carrier billing is patchy, the various benefits which the mechanism offers – higher conversion rates, opportunities to monetise unbanked customers – suggest that deployments will rise significantly in the medium term”.
According to the report, Music and video now account for nearly half of all mobile content revenues, although the increased video traffic has implications for mobile network capacity.The convergence of the gaming and the social networking spaces has been one of the major drivers behind the post-download monetisation opportunity.