Challenges of mobile content frustrate CTIA panelists

By Mickey Alam Khan

April 1, 2008

Discontent with content

LAS VEGAS – You could feel the frustration in their voices as panelists at the CTIA Wireless 2008 conference grappled with ways to manage the distribution and monetization of mobile content.

Accessibility drives adoption of mobile content, according to David Bell, vice president of PlayPhone Inc. But even that comes with a caveat, as he pointed out to delegates at the CTIA's Marketing - The Mobile Channel preshow event.

“If you don’t offer the right content at the right price, content won’t sell,” Mr. Bell told a mostly packed room of wireless industry delegates at the annual jamboree.

The dilemma for most content owners is the pluses and minuses of on-deck and off-deck sales, he said.

Off-deck offers more scope for content owners to enable consumer searches, create demand and reach end users. The downside to that is clutter, which an easy-to-find presence on a carrier’s on-deck portal can avoid.

Still, the issue facing most content owners in the United States is even more basic.

“Users don’t know how to get content from mobile phones,” Mr. Bell said.

Sean Rosenberg, director of RCA Music Group, was more optimistic given the nature of his business. Music is one of the top sellers on mobile.

In fact, RCA announced yesterday that a ringbacktone from sultry singer Alicia Keys hit the 500,000-mark. That is a milestone for ringbacktone sales.

For Mr. Rosenberg, content can be sold in two ways: via subscription or through a la carte.

Most mobile sales of music today are a la carte, or one-off sales of a song or a ringtone.

“Unfortunately that bypasses the entire relationship with consumers,” Mr. Rosenberg said.

The a la carte model is really about making offers, he said.

Subscription, on the other hand, is linked to pricing discounts and that may disadvantage content owners while retaining the consumer relationship.

“I believe the subscription model has to evolve into a service model,” Mr. Rosenberg said.

His real worry: the SIS factor, or Shrinking Infinite Space.

“We’re really hindered by the size of the handset,” Mr. Rosenberg said. “How do you get into those top five slots [on the mobile site page]?”

Matt Jones, director of Gannett Digital, was more sanguine. His company, which publishes the USA Today newspaper, has had mobile sites for its publications since 1997.

Mr. Jones has three tasks.

One is to oversee Gannett’s network of mobile sites – 107, and all part of a global ad network. Next is to run an active text message program with partner 4Info in 30 local markets and for USA Today. Finally, he is responsible for a mobile downloadable games line.

Mr. Jones has seen the industry mature rapidly.

“Really online or mobile, things seem to be developing along the lines of an ad-supported model,” he said.

For fellow panelist Carrie Connor, director of marketing at shrink-wrapped game maker Sega Games, mobile was a tough nut to figure. She said mobile was still governed by carriers. The on- and off-deck battle also was a dilemma for content owners.

“For us, there’s been a lot of education we’ve had to do internally,” Ms. Connor said. “The shopping experience is so limited, especially on the carrier deck. That’s why the off-deck could be so enticing to Sega.”

RCA’s Mr. Rosenberg didn’t buy that premise.

“So far it’s on-deck or nothing,” he said. “We wouldn’t be in this business if it were not for that. Off-deck has been a little difficult. A lot of trust has been broken down.”

Mr. Rosenberg was referring to subscription-based services running false ads that either over-promised or duped mobile consumers.

“I think brand trust is hugely important,” PlayPhone’s Mr. Bell said.

Gannett’s Mr. Jones didn’t see trust as the issue limiting mobile content’s growth.

“The biggest problem we have is creating awareness of what a short code is, what it can do,” he said. “Awareness and education and what these products can be.”