TelecomAsia.net says that mobile operators just don’t understand the content market, much to the irritation and frustration of content creators.
“Don’t talk to us about operators” say the content creators:
“They are greedy, demanding too much revenue share
They are protective, to the point of paranoia, of ÏtheirÓ customers
They are cumbersome and difficult to deal with
They donÌt understand what content can do for them.”
(I paraphrase).
ThereÌs some truth in all of those complaints, yet the most revealing disconnect is that the carriers just donÌt see thereÌs a problem.
According to the article, the problem is that for the creators, it’s a huge, new untapped market. While for the operators, it’s only a small opportunity for mobile.
In the eyes of operators, the content business involves investment in products with an unpredictable level of demand across a small segment of customers. For every smash hit ringtone or game are dozens that languish on the server.
Content requires marketing to tiny segments or sub-segments of their customer base, while the management of co-branding with a high-profile and demanding content owner adds another layer of complexity.
ItÌs hard work, itÌs much more hit-and-miss than voice and maybe just not worth it.
But, of course, it is worth it – on pure financial grounds alone. If you have good marketing programmes in place, the rewards can be stupendous. Operators tend to be great brand marketers, but not so hot on product marketing, so they will find this hard.
But content can also provide the customer with an emotional tie to a brand, that’s currently missing from many mobile operator customer relationships, as I blogged last week.
These are both very compelling reasons to get it right, so I’ve no doubt we’ll get there in the end. But it won’t be plain sailing.
There was once shoe company. It sent a salesman to an Island to explore the opportunities. He reported back that there wasn’t a market as “no one wears shoes there”.
A few years later, they sent a saleswoman to investigate. “Hey” she called in “the market’s wide open – no one wears shoes here!!”
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