A KPMG survey says that mobile phone users are “unlikely to pay extra to access the growing range of video and audio content available on their phones”. It says Asian mobile users are very price sensitive and it predicts a similar behaviour from the users in the US and Europe. A 40 per cent of the 3,600 mobile phone users KPMG surveyed said they would not pay a premium to access multimedia services, such as music videos, television clips, news and other content. The study says operators should look at content not merely as a revenue generator but more as a way to reduce churn.
I would say it may be too early to take a pessimistic view on content. The business is yet to mature in various markets and a vast section of the customers are yet to experience compelling content. Moreover, the business models are yet to settle down.
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