KPMG International has come out with a nice report on the business case for mobile operators launching ad-supported content service on mobiles (and other “converged” services), and not look for too much in subscription services.
This quote by KPMG’s Sean Collins sums it up very nicely: “Mobile service providers will need to stop thinking of converged services purely as a revenue booster. Instead, they should consider them as a churn reduction tool, allowing them to present a much more stable, loyal subscriber base which should be attractive to advertisers and digital commerce partners. In its most basic terms, it’s a case of moving from a ‘wallet share’ model – aimed at extracting more cash from each customer – to a ‘wallet sharing’ model. The latter will use these enhanced, converged services to deepen their customer relationships in ways that allow other parties to reach them.”
(
) You can download the PDF of the study here (PDF link, 28 pages)
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