Mobile Content Retailing – Not As Easy As It Looks – Part 1
Posted by Mark Levy | Posted in Articles, Mobile | Posted on 02-05-2008
Tags: MMA, Mobile, ringtones, Sprint
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By Mark Levy, CEO MaxxoMedia
Throughout the past few years, the mobile content industry has enjoyed strong market growth. Primarily fueled by the sale of master ringtones directly through the cell phone carriers, the market looked unstoppable.
Recent studies show, however, that the ringtone market appears to be peaking and is projected to decline in the coming years. So far, no other mobile content application has proven it is ready to take the ringtone’s place. Mobile video has yet to take off and full-track music downloads seem to be dead on arrival. Some project Ring Back Tones may be the one to break through although it’s growth has been slow to date.
As recently as last year, it was believed that the direct-to-consumer market, also known as “off portal” mobile content sales, would more than make up for any flattening sales at the carriers.
Foreign-based companies, which had been successful in their native markets, began entering the U.S. market. They launched multi-million-dollar TV and print advertising campaigns to quickly build brand and drive awareness. Many considered the ads misleading. They offered “free” ringtones without explaining clearly that the consumer would be signed up to a pricey subscription.
