That’s according to a latest note from Piper Jaffray analyst Safa Rashtchy: “While there could be some concern about INSP being disintermediated longer term, we believe the market is actually moving more toward the INSP model as INSP creates efficiencies for both parties which enables them to leverage INSP’s relationships with hundreds of content producers (i.e., Universal, Sony, EMI, BMG) and a subscriber reach of over 85% in North America.”
“InfoSpace announced last week that it had been selected by Virgin Mobile U.K. to provide media downloads. While the European market has previously employed more of the direct model, we believe this deal could be an indication that Europe may be moving more toward the intermediary model. We believe INSP’s 50% sequential organic growth in mobile media revenue in Q2 is a clear indicator of how strong the market is today and we believe we are still in the early stages.”
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